Secured Loans for Buy to Let Property Owners

Monday, February 20th, 2017

Many landlords and owners of investment buy to let property have historically leveraged their existing portfolio to raise further capital via a re-mortgage or secured loan, which in most instances has then been used towards the purchase of additional buy to let property.

The rules have changed

That said, in last 12 months, the industry regulators (the Financial Conduct Authority and Prudential Regulation Authority), have introduced changes to the rules and guidance regarding the assessment of mortgages on buy to let property which has made it much more difficult for many landlords to access the capital they have in their existing portfolio. Given that each lender has their own lending criteria, these changes have been further complicated by the different interpretations placed on that guidance which means that borrowing assessments will also vary, sometimes quite dramatically.

This can be compared to the second charge mortgage market where lenders will perform a different ‘test’ on the affordability of the additional borrowing required based on factors including rental income received, any personal income the borrower may have and even their personal tax status.

Given the complexity that now surrounds both the mortgage and secured loan markets for buy to let property, consideration should now be given to both routes as a potential means of accessing the capital required. Unlike many other buy to let mortgage brokers, Caboodle Financial Services Limited can access lenders in both the mortgage and second charge mortgage markets to determine the best available option in all the circumstances.

Consult a Specialist Broker

Clearly with the many different products offered for remortgages and second charge mortgages, the rates available and fees charges can be significantly different between these two product categories. Ultimately, even if only one route is available it is still worth “crunching the numbers” and that is where a specialised broker can prove to be invaluable.

Secured Loans, Birmingham

So, still not sure whether a Secured Loan is the right Buy to Let product for you? Call Caboodle Finance of Sutton Coldfield, Birmingham on 0121 308 9114 today or alternatively just click HERE to contact us via our website and one of our friendly team will be happy to help.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. For secured loans a broker fee up to 10% of the loan amount borrowed may be payable on successful completion. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England at SQ2 House, 240b Lichfield Road, Four Oaks, Sutton Coldfield, West Midlands B74 2UD (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

© 2019 Caboodle Financial Services Ltd