This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.
As a landlord there are times when you may need to raise capital quickly, whether to take advantage of an financially attractive house sale, or to raise funds for repairs to current properties. The solution is not always to remortgage and we have a lender who can help.
If you want to borrow more capital without affecting your current mortgage, or you are not outside of your initial rate period and thus would be subject to early repayment charges, a second charge loan may provide the solution you are looking for.
This specialist lender also provides a helping hand to those landlords who have a few minor blips on their credit profile, more on this below.
The benefits of a second charge loan
Raising capital from an existing mortgaged property requires you to remortgage to a new product and borrow more which ties you to a potentially higher monthly repayment. Not so with a second charge loan. You can retain your existing low rate deal which remains untouched, and instead take out further borrowing separately.
Tighter mortgage lending criteria can be avoided
With the current PRA changes coming into effect at the start of 2017, and many lenders already having switched to tighter lending criteria, some landlords may find themselves unable to remortgage at the required higher LTV, even if they want to.
Some second charge loans are more flexible in their underwriting; allowing you to raise the capital required despite the changes, which is true with this lender.
Second charge loans are available to HMO landlords too
It is not just standard buy to let landlords that can benefit from this alternative funding option. HMO’s are also eligible, but it is worth noting that a valid HMO licence will need to be provided, where one is required by the local council.
Flexible underwriting for landlords with credit challenges
This specialist second charge lender will also take into consideration additional factors that may affect an application with other lenders such as CCJ’s, adverse credit and low rental income. When underwriting an application, they will take a case by case approach and tailor a bespoke package.
A second charge loan solution for first time landlords
New landlords starting out a career in property investment often find themselves unable raise capital due to their relatively limited time as a buy to let owner.
This lender will look at your circumstances, such as industry and market knowledge and external income (relevant proof would be required). This means landlords who have not been up and running long, but wish to expand their portfolio, still have the same opportunity with this lender as their more experienced peers.