Second charge mortgages – an evolving market

Thursday, January 31st, 2019

It has become apparent in recent months that the second charge mortgage market is evolving in many different directions, particularly regarding lending on a buy-to-let property. 

In our experience, an increasing number of existing landlords are using a second charge on their buy-to-let property in order to raise capital. 

Raising capital on a buy to let property

The most common reasons we have come across are to release equity to increase the size of their existing property portfolio, make improvements to one or more of their buy-to-let properties or to fund improvements on their main residence. 

Why choose a second charge mortgage?

One of the main factors in landlords choosing to use a second charge mortgage on a rental property is that the existing rental income can often cover both the monthly payments for the existing buy to let mortgage and that required for any additional borrowing. 

Another reason for choosing to raise the capital via a second charge mortgage is where a landlord may not want to sacrifice an attractive interest rate deal, they have on an existing mortgage in favour of a new deal on the whole amount of the mortgage plus the new borrowing at a potentially inferior interest rate.

Get the right mortgage advice

However, when raising the capital, it is always important to get expert mortgage advice regarding the most appropriate route. Our experienced professional advisers will be able to guide and recommend the best and most suitable route in each situation to ensure the funds are raised in the most cost-effective way and in a manner that meets clients’ plans.

Our team here at Caboodle Finance of Sutton Coldfield, Birmingham will always do their utmost to ensure that clients get access to the very best mortgages and second charge mortgages that match their individual circumstances. 

For more information call 0121 308 9114 today or alternatively just click HERE to contact us by email and one of our specialist mortgage broking experts will be in touch.