Buy to let secured loans
Buy to let secured loans can be arranged for almost any legal purpose and, as the loan is secured against the property, you may find the interest rates are cheaper than some other forms of borrowing.
If you’re considering expanding your portfolio, our loans could be used to raise the deposit for further investment properties by releasing the equity within the portfolio.
Are you looking to raise capital, to make some essential upgrades to an existing rental property, but the amount required is greater than the maximum you can raise on a personal loan? A second charge buy to let could be an alternative option.
You could even use our buy to let secured loans to consolidate existing debts, into a more manageable monthly repayment. Bear in mind that if you extend the term over which you borrow, this may affect the total amount you repay.
Call us on 0800032 3737 and ask about our buy to let secured loans today.
You could get a lending decision in just one call.
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Why choose Mercantile Trust for a buy to let secured loan?
Mercantile Trust has years of experience as a direct lender, we began lending in 2015. We’re part of a group of financial service experts who have been operating since 1988, so you know you’re in safe hands.
Our aim is to find an affordable loan, suited to your needs. If we can’t achieve that, we will tell you. We’ll never encourage you to put yourself in financial harm’s way.
We pride ourselves on being able to lend where others can’t. We’ll take a manual approach when reviewing your application, so you get a lending decision based on common sense, not computer automation.
You can expect to receive our high-quality customer service when speaking with our experienced team and be guided through your application by the same advisor, ensuring you always have a familiar point of contact.
Call the team on 0800 032 3737 or enquire online today, to discuss your borrowing needs.
- Up to 75% loan to value
- Rates from 11.08%
- 1st and 2nd charge
- Tenants must not be related to applicant
- Applicants must be at least 18 years old
- Mortgage term must end by applicant’s 85th birthday
- Rent must cover monthly payment at 125%
- 1% stress rate
- 12 months mortgage or rental history required
- Top slicing available
- No personal income requirements
- Mortgage term can be between 3 and 25 years
- Most property constructions accepted
- Individuals and limited companies accepted
- First time landlord, first time buyers accepted
- HMO's (Houses in Multiple Occupation) accepted
- No maximum number of rooms in HMO’s
- DSS tenants accepted
Frequently asked questions
A buy to let secured loan allows landlords to borrow money using the equity that’s in their buy to let property, or portfolio of properties.
Buy to let secured loans are a useful source of borrowing for many landlords, as they can be used for a variety of different reasons.
Whether you wish to renovate and make home improvements to your current properties, raise funds to invest in another buy to let property or even consolidate your debts, we can help find a loan suitable for your needs.
It is important to note that the property that the loan is secured against acts as a form of security for the lender. This means that if you were unable to keep up with the monthly repayments, the lender could take possession of the property.
A buy to let secured loan can offer you many benefits. Primarily they offer you the ability to borrow money using the equity in your property that can be used for a range of reasons.
A buy to let secured loan may be ideal for you if you:
- Are on a fixed mortgage rate – you may be tied into a preferential mortgage rate with your current mortgage lender. A secured loan provides you with an alternative borrowing solution that doesn’t affect your existing mortgage.
- Are looking to maintain an existing mortgage rate – if for some reason your credit rating isn’t as good as it was once, it could mean that a secured loan on a buy to let property would be a better alternative to re-mortgaging your property with a potentially higher interest rate.
- Are looking to borrow more - usually, applicants are allowed to borrow a larger sum of money with a secured loan, in comparison to other forms of lending such as an unsecured loan. It can also be easier to obtain for those with poor credit files. This is because the property that is secured to the loan reduces the financial risk for lenders.
A secured loan is a mortgage that is secured against the equity you have built up in your property. It means you will have two mortgages with the secured loan sitting behind the initial mortgage.
A buy to let secured loan offers a great way to release equity from your existing buy to let property. The term secured is a reference to the fact that the loan will be secured against an asset, in this case a buy to let property, which will be used as security if you can’t pay back the loan. As there is a security involved, typically interest rates are lower than those available for unsecured loans.
You may have heard also of them being referred to as a second mortgage, a second charge mortgage and even a homeowner loan.
It’s important to keep up with your monthly mortgage repayments as otherwise the asset your loan is secured against could be repossessed.
A buy to let secured loan allows landlords to borrow money using the equity that’s in their buy to let property, or portfolio of properties.
Buy to let secured loans are a useful source of borrowing for many landlords, as they can be used for a variety of different reasons.
Whether you wish to renovate and make home improvements to your current properties, raise funds for a deposit on a buy to let mortgage or even consolidate your debts, we can help find a loan suitable for your needs.
It is important to note that the property that the loan is secured against acts as a form of security for the lender. This means that if you were unable to keep up with the monthly repayments, the lender could repossess the property.
The amount you can borrow relies on the available equity that’s in your property. Equity is the portion of your property that you own outright, free from any mortgage.
Whilst a secured loan on a buy to let property can give landlords the funds they require, it is important to note that mortgage offers are dependent on various factors. Lenders will look at an applicant’s personal circumstances, such as their income, credit history and outgoings.
Buy to let secured loan interest rates can be lower than other unsecured forms of borrowing such as personal loans. This is because if the borrower defaults, the lender can repossess the property the loan is secured against.
The rate you’re offered depends on the amount you wish to borrow, the amount of time you wish to borrow for, your credit score, and the equity in the property being used as security.
Having a poor credit profile doesn’t mean that you will struggle to obtain a buy to let secured loan, however you may find there are fewer lenders that can help you.
Although some lenders may not be able to assist, Mercantile Trust can help individuals with poor credit profiles. They consider all credit histories including those that have:
- Accounts in default
- CCJ’s (County Court Judgement)
- Missed payments (maximum of 2 within 12 months)
- Historic IVA (individual voluntary arrangement) which is now settled