Mercantile Trust offers truly flexible buy-to-let mortgage solutions for all borrowers, from first-time landlords to experienced portfolio investors. We can lend from £10,000 to £500,000, catering for those buying in areas with lower property values, all the way to those who need to borrow larger amounts. Regardless of your client’s experience as a landlord, Mercantile Trust can help!
We are specialists in providing finance to those borrowers who are underserved by the market.
- First and second charge mortgages
- Lending up to 75% loan to value (LTV)
- Smaller loans from just £10,000, all the way up to £500,000
- Individuals and limited companies
- Lower value properties (from just £75,000)
- 125% rental coverage
- ‘Top slicing’ available
- Holiday lets, HMOs, non-standard construction properties
- First time landlord/first time buyers with no rental history up to 65% LTV
- Adverse credit considered
- Properties in England, Wales, Scotland, Northern Ireland
Mercantile Trust provides buy-to-let solutions to those clients with specialist requirements. Customers with credit problems? We can help.
Do they need a flexible approach to affordability calculations? We accept personal income and surplus buy-to-let income to supplement rental coverage. Ask us about top slicing!
Call our advisers today. Your clients could get a lending decision in just one call.
Why choose Mercantile Trust?
Customers value our common sense and flexible approach to lending, as we recognise that one size does not fit all. If your customers are looking to purchase an unusual property, their circumstances require personal consideration, perhaps they’ve had credit history issues, or for any other reason they are struggling to borrow, we could be the lender for them.
FAQ's:
What is a first charge buy-to-let mortgage?
A first charge buy-to-let mortgage is for customers who are looking to buy a property and rent it out to tenants.
What is a second charge buy-to-let mortgage?
A second charge buy-to-let mortgage is a loan which allows your client to raise extra cash and release equity from their existing mortgaged rental property. A second charge mortgage allows your client to borrow money while having an existing first charge mortgage in place.
What are the benefits of a first charge buy to let mortgage?
The main benefit of a first charge buy-to-let mortgage is that your customer can generate income from an investment property. Rental demand continues to grow and so does the average minimum deposit requirement for first-time buyers. This often causes them to choose rent a property as an alternative to buying, due to it being more affordable.
What are the benefits of a second charge buy to let mortgage?
The main benefit of a second charge buy-to-let mortgage is that your client can keep their existing mortgage rate, which can save them money from not having to remortgage onto a higher rate. As a result, there are no changes to existing mortgage terms and conditions.
Another benefit of a second charge buy-to-let mortgage is that your client can avoid paying any early repayment charges as the repayment terms are flexible so they are able to save money on interest.
Common uses are:
- Refurbishment
- Debt consolidation
- Business
- Purchasing further investment properties
Is my client eligible for a first charge mortgage on their buy-to-let property?
For your customers to be accepted for a buy-to-let mortgage they must fit the eligibility criteria. The criteria are as followed:
- They must be at least 18 years old
- They must own their main residence or been renting for a minimum of 12 months
- They must meet minimum deposit requirements
Is my client eligible for a second charge mortgage on their buy-to-let property?
To secure a second charge mortgage your client will need equity in their property and enough income to cover their first and second charge mortgages.
How much can my client borrow for a first charge buy-to-let mortgage?
There are a few factors that determine the amount that your customer can borrow for a first charge mortgage.
Lenders will look at personal traits that determine how much your customers can borrow for a first charge buy-to-let mortgage. These are as followed:
- The value of the property/Purchase Price
- The customers financial commitments
- Their credit history
- Their level of deposit
At Mercantile Trust, we provide first charge buy-to-let loans from just £10,000, all the way up to £500,000.
How much can my client borrow for a second charge buy-to-let mortgage?
There are a number of factors that determine the amount that your client can borrow for a second charge mortgage.
The amount of forecasted rental income will be taken into account. In addition, lenders will consider other factors that determine how much your clients can borrow:
- The value of the property
- The outstanding mortgage balance
- Annual Rental income
- Credit history
Is a first charge buy-to-let mortgage the right solution for my client?
If your customer is looking to generate additional income, a buy-to-let mortgage may be suitable for them.
It is important to note that there are risks for any type of borrowing, so it is always worth doing research before considering a mortgage.
Is a second charge buy-to-let mortgage the right solution for my client?
If your client is looking to capital raise quickly then a second charge mortgage may be suitable for them.
It is important to note that there are risks for any type of borrowing, a second charge buy-to-let mortgage is secured on the property and if your client is unable to repay their loan then their property is at risk of being repossessed.
View our full criteria here