The buy-to-let second charge market provides a range of solutions for borrowers who have perhaps been refused a mortgage by their current lender or high street bank.

Popular second charge lenders are often more flexible in their application criteria and can step in where applicants do not meet the normal mainstream lenders criteria. Landlords can borrow up to 75% loan to value against their buy to let investments with loan repayment terms from 3 – 30 years from a wide range of lenders in this space.

Could this help you resolve your problem 

• Buy to let Loans accepted for semi-commercial property, flats above shops, non-standard construction homes, HMO and student let properties.
• First and second charge options
• Rates from 75% LTV
• No proof of income or earnings required
• Proof of rental income from AST acceptable
• Expat applications welcome
• No early repayment charges (ERC’s)
• Raise capital against multiple buy-to-let properties and portfolios
• No minimum property valuation
• Loans for Self-employed and professional landlords
• Applicants with some adverse credit welcome including CCJ’s and defaults

For further key facts and application criteria on these products you should seek independent financial advice.

What lenders are available?

There is a wide selection of lenders who offer secured loans on buy to let properties, many of which however only accept applications via their approved brokers and intermediaries.

Help required

If you would like to know more please make contact and one of our independent advisers will be happy to assist.

The second charge mortgage market continues to grow with the value of new business reaching £116 million in November 2019, figures from the Finance & Leasing Association (FLA) show.

This is a rise of 17% from November 2018 with the number of new agreements rising by 14% to 2,594.

In the 12 months to November 2019 new business totalled £1.238 billion, 16% up on the same period the year before while new agreement numbers were up 19% to 27,747.

The second charge mortgage market reported a fifteenth consecutive month of double-digit new business volumes growth in November. The average value of second charge mortgages in November grew by 3% compared with the same month in 2018 to £44,530.

Buy-to-let landlords

Landlords beginning to utilise this method of raising capital which just did not happen in the past. Landlords with good equity within their properties have seen this route of raising capital as quick and very uncomplicated.

Lenders have seen the potential growth in this area, and they have responded very well, offering a good range of flexible loan deals on Buy-to-let properties. Two or three years ago there was only a small choice, plus the rates were a lot higher.

In the years gone by if a homeowner or landlord wanted to raise capital from the equity within their home brokers invariably recommended a re-mortgage. This situation is changing as all parties become more aware of the advantages of a second charge loan has to offer.

If you are looking to release funds tied up within your property it is strongly recommended to explore this type of loan as you could save a good deal of money, especially on legal fees.

Can we help?

If you would like to know more about this form of lending please do make contact and one of our independent advisers will be happy to assist. 

In these challenging times of financing it has become more important to be able to complete a deal within a set timescale. Second charge finance has grown in status year on year and is going from strength to strength since regulation.

A second charge delivers funding quickly and efficiently which is something high street and private banks just cannot do at a competitive rate.

A recent survey of homeowner’s clearly shows one of the most important ingredients in funding a deal is speed and ease of completion. The survey also discovered that traditional lenders are taking too long to get funds released and deals falter due to this reason.

A second charge can be secured on a property and “sits” behind any first charge mortgage both on private and buy-to-lets. A loan without complications can be completed within 14 working days which is considerably less than a re-mortgage.

If you are thinking of reviewing your finances do consider a second charge if a loan is required. Interest rates and conditions are very competitive when compared to a traditional mortgage.

There is little doubt second charge lending has had its most successful year. The good thing about this is the lenders have taken this on board by expanding products to meet the challenges.

These are indeed very progressive times for the second charge finance market as the industry looks forward to 2020 and beyond.

Would you like to discuss your funding needs?

If you wish to raise a loan secured on a property you own please do make contact and one of our independent advisers will be happy to assist.

We are living in very strange times and many things are not clear, if you are looking to raise funds as and when this crisis is over it is strongly recommend getting the “ball rolling” sooner rather than later.

All experts are predicting there will be a huge surge of lending applications later in the year, so getting your requirements in place now would be a sensible move.

Second charge lending delivers much quicker

Second charge lending continues to grow in stature month on month as homeowners look for loans at affordable rates.

Homeowners are becoming very aware of the costs associated with unsecured lending and the so called “pay day lenders”.

A recent survey taken from 1000 homeowners clearly shows speed of completion is a key factor when taking out a new loan. Obviously the costs and interest rates were very high on the list of wants but speed was very important also.

One of the big appeals of a second charge loan is it meets all the surveys key facts such as costs and speed. On average a second charge loan is completed within 15 working days, this does of course vary dependant on the complexity.

The last financial year has also seen a significant reduction in set up costs plus interest rates are at the lowest ever recorded.

Lenders have seen their market share grow at a rapid rate. They have been quick to recognise the importance of speed in completing a deal as competition increases. One major lender commented “The last 12 months has seen huge changes within the second charge market with faster completions being a key factor to winning business”.

There is no doubt second charge lending has had its most successful year, the good thing is lenders have taken this on board and reacted positively to meet the challenges.

Need some assistance

If you think this type of loan could assist you with your future planning make sure you get the right one to suit your needs. There are many different lenders offering numerous second charge loans so please do call our independent advisers who will be happy to help.

The number of second charge loans agreed in February was 13% higher than the same time last year at 2,435 figures from the Finance and Leasing Association reveal.

However, the data pre-date the covid-19 pandemic hitting the UK and the ensuing lockdown, which put the brakes on the property market.

The volume of loans agreed in February was 9% higher than a year earlier at £107m.

The total number of secured loans agreed over the 12 months to February reached 28,512, an increase of 18% on the previous year.

By value, lending was also 18% higher in the year to February at £1.28bn.

The second charge mortgage market made a positive start to 2020, but the mortgage market faces serve disruption from the impact of the coronavirus on the economy.

Lenders are doing their best to support customers during these unprecedented times, and any customer facing repayment difficulties due to the Coronavirus should contact their lender as soon as possible to discuss the help they need.

Looking to raise funds?

We are living in very strange times and many things are not clear, if you are looking to raise funds as and when this crisis is over it is strongly recommend getting the “ball rolling” sooner rather than later.

All experts are predicting there will be a huge surge of lending applications later in the year, so getting your requirements in place now would be a sensible move.

Like to discuss your lending needs?

If you would like to know more about raising funds from the equity within your property do make contact, one of our fully qualified independent advisers will be happy to assist.