Buy To Let Secured Loan
Use your existing equity to buy an investment property and grow your rental portfolio.
Related articles
Building on what you own
Buy-to-let secured loans let you tap into the equity in your property to finance a new one. Whether you're an experienced landlord or just getting started, these loans can help you grow your portfolio without needing a massive upfront deposit.
Here's why landlords and property investors often turn to buy-to-let secured loans:
- Access equity: Use the value in a property you already own to secure funds without selling it.
- Keep your mortgage: Unlike remortgaging, you can keep your existing mortgage deal intact.
- Flexible use: Ideal for expanding a portfolio, upgrading, or boosting rental income potential.
- Lending terms: Lenders often look at rental income and property value rather than your personal income.
If you already own a property with some equity built up, this type of loan gives you more freedom to move quickly on opportunities in the market.
Is a buy-to-let loan for you?
These loans aren't for everyone, but they work well in the right situation. They might suit you if:
- You're a landlord looking to grow your property portfolio
- You want to invest in improvements that increase rental yield
- You've got equity tied up in property and need capital for another investment
- You don't want to disturb a low-rate mortgage by remortgaging
Remember, this is a secured loan - meaning your property is on the line if you can't repay. Always factor in the risk, especially if interest rates rise or rental income dips.
Summing up
Secured loans offer a smart way to fund a buy-to-let property using your existing property's value. If you're looking to grow your rental income without touching your main mortgage, this could be the flexible option you need.
Frequently Asked Questions: Secured Loans
Do I need to live in the property to get a secured loan?
No - with a buy-to-let secured loan, the property can already be let out to tenants. The key factor lenders focus on is the property's value and its income potential, not whether it's your home. This makes it a great option for landlords who want to unlock equity from a rental property without needing to live on-site themselves.
Do I need to live in the property to get a secured loan?
No - with a buy-to-let secured loan, the property can already be let out to tenants. The key factor lenders focus on is the property's value and its income potential, not whether it's your home. This makes it a great option for landlords who want to unlock equity from a rental property without needing to live on-site themselves.
Do I need to live in the property to get a secured loan?
No - with a buy-to-let secured loan, the property can already be let out to tenants. The key factor lenders focus on is the property's value and its income potential, not whether it's your home. This makes it a great option for landlords who want to unlock equity from a rental property without needing to live on-site themselves.
How much can I borrow with a buy-to-let secured loan?
The amount you can borrow depends on factors like the equity in your current property, your credit history, and the lender's criteria. This makes for a wide range of loan amounts. Lenders will also consider your current mortgage (if any), your ability to repay, and the potential rental income from the property. The more equity and income you can show, the more you can likely borrow.
How much can I borrow with a buy-to-let secured loan?
The amount you can borrow depends on factors like the equity in your current property, your credit history, and the lender's criteria. This makes for a wide range of loan amounts. Lenders will also consider your current mortgage (if any), your ability to repay, and the potential rental income from the property. The more equity and income you can show, the more you can likely borrow.
How much can I borrow with a buy-to-let secured loan?
The amount you can borrow depends on factors like the equity in your current property, your credit history, and the lender's criteria. This makes for a wide range of loan amounts. Lenders will also consider your current mortgage (if any), your ability to repay, and the potential rental income from the property. The more equity and income you can show, the more you can likely borrow.
Can I get one with bad credit?
Yes, it's possible even with a poor credit history. Some specialist lenders work with borrowers who've had financial difficulties in the past. The main factors will be the amount of equity in your property and whether your rental income can cover the repayments. You might not get the best rates, but a homeowner loan is typically easier to get than an unsecured loan.
Can I get one with bad credit?
Yes, it's possible even with a poor credit history. Some specialist lenders work with borrowers who've had financial difficulties in the past. The main factors will be the amount of equity in your property and whether your rental income can cover the repayments. You might not get the best rates, but a homeowner loan is typically easier to get than an unsecured loan.
Can I get one with bad credit?
Yes, it's possible even with a poor credit history. Some specialist lenders work with borrowers who've had financial difficulties in the past. The main factors will be the amount of equity in your property and whether your rental income can cover the repayments. You might not get the best rates, but a homeowner loan is typically easier to get than an unsecured loan.
Are there fees involved in buy-to-let loans?
Yes, there are usually several fees to be aware of when taking out a buy-to-let loan. These can include arrangement fees (charged by the lender), valuation fees (to assess the property's current market value), legal fees (for any conveyancing or title checks), and sometimes early repayment charges if you pay off the loan early. Some lenders may allow you to add these fees to the loan amount.
Are there fees involved in buy-to-let loans?
Yes, there are usually several fees to be aware of when taking out a buy-to-let loan. These can include arrangement fees (charged by the lender), valuation fees (to assess the property's current market value), legal fees (for any conveyancing or title checks), and sometimes early repayment charges if you pay off the loan early. Some lenders may allow you to add these fees to the loan amount.
Are there fees involved in buy-to-let loans?
Yes, there are usually several fees to be aware of when taking out a buy-to-let loan. These can include arrangement fees (charged by the lender), valuation fees (to assess the property's current market value), legal fees (for any conveyancing or title checks), and sometimes early repayment charges if you pay off the loan early. Some lenders may allow you to add these fees to the loan amount.
What happens if I miss payments?
Because the loan is secured against your property, missed payments could eventually lead to repossession. Lenders may take legal action to recover the debt, and your credit rating will likely be affected. That's why it's vital to budget carefully and ensure your rental income can cover your repayments. If you ever struggle to keep up, it's vital to contact your lender early on.
What happens if I miss payments?
Because the loan is secured against your property, missed payments could eventually lead to repossession. Lenders may take legal action to recover the debt, and your credit rating will likely be affected. That's why it's vital to budget carefully and ensure your rental income can cover your repayments. If you ever struggle to keep up, it's vital to contact your lender early on.
What happens if I miss payments?
Because the loan is secured against your property, missed payments could eventually lead to repossession. Lenders may take legal action to recover the debt, and your credit rating will likely be affected. That's why it's vital to budget carefully and ensure your rental income can cover your repayments. If you ever struggle to keep up, it's vital to contact your lender early on.
Articles that might interest you
Secured loan interest rates and charges
A guide to the rates and fees that come with secured finance, to help you make the right borrowing decisions.
Secured loan broker
Expert advice that helps you find the best secured loan options for your specific needs.
Secured Loans from Believe Loans | Specialist Broker
Believe Loans is a licensed broker, specialising in secured loans from 90+ lenders. Discover how they can save you time and money in securing a loan.
