Buy to Let Secured Loan 2nd Charge Equity Draw Down
Second Charge Equity Draw Down
Are you a landlord with high equity value in your properties and low interest rates on your Buy-to-Let mortgages? Are you looking to raise capital, but don’t want to remortgage and lose your low interest rates? The Buy to Let Equity Withdrawal Scheme could be exactly what you’re looking for.
It’s a 2nd charge facility that allows landlords to raise up to 75% LTV less the existing mortgage balance, for example:
Property value is £200,000 with a mortgage of £110,000 at 2% over Bank of England base rate. The Maximum loan would be £200,000 x 75% (which is £150,000) less the existing £110,000 = £40,000
There are no minimum personal income requirements, so this is ideal for self employed applicants with low net profits, or employed applicants with a second job, or non-guaranteed overtime and bonuses etc., and retired applicants on a modest pension.
Any BTL property can be considered – even student let properties with up to 4x students on 1x AST agreement.
It is particularly useful for those let properties that show a low yield, where conventional Buy to let mortgages would be severely restricted by a lender’s rent calculation.