How does Promise Money's process for arranging a revolving credit facility work — step by step?

How does Promise Money’s process for arranging a revolving credit facility work — step by step?

For UK buy-to-let landlords, managing cash flow across a property portfolio can be a constant challenge. Whether you need to fund urgent refurbishment costs, secure property at an auction, cover void periods, or bridge the gap during a remortgage, traditional borrowing options can sometimes feel too slow or restrictive.

A Buy-to-Let (BTL) revolving credit facility offers a flexible alternative. Working like a property overdraft, this secured facility allows you to draw down funds, repay them, and draw them again without needing to reapply each time. Crucially, this is a secured second-charge facility that sits behind your existing first-charge mortgage. It is not an unsecured business loan, a credit card, or a generic business line of credit.

Because it is secured against your residential buy-to-let property, arranging this facility requires a structured advice and application process. As an FCA-authorised broker (Ref: 681423), Promise Money guides you through every stage. Here is a step-by-step guide to how the process typically works.

Step 1: Your Initial Enquiry and Needs Assessment

The journey begins when you get in touch with Promise Money by calling 01902 585020 or visiting our hub at promisemoney.co.uk/landlord-revolving-credit-100. During this first conversation, we will discuss your property portfolio and your investment goals.

We want to understand exactly what you plan to use the facility for. Typical uses include:

• Funding rapid property refurbishments to increase rental value.
• Paying auction deposits where you must complete the purchase within 28 days.
• Covering temporary void periods between tenancies.
• Financing energy performance certificate (EPC) upgrades to meet modern regulations.
• Depositing funds for your next portfolio expansion.

At this stage, we will also gather details about your existing first-charge BTL mortgage and the current value of the property you wish to use as security.

Step 2: Sourcing and Comparing the Market

Promise Money is a broker, not a direct lender. Once we understand your requirements, we search and compare available second-charge revolving credit facilities from our panel of lenders.

We compare these specialist facilities against other alternatives you might be considering, such as bridging finance or remortgaging. While bridging loans can be useful, they are typically designed for single-use transactions and interest often rolls up, meaning monthly payments are not standard. Remortgaging, on the other hand, can trigger expensive early repayment charges (ERCs) on your primary mortgage. A revolving credit facility may avoid these issues by sitting comfortably as a second charge while only charging you interest on the money you actually draw down.

Step 3: The Credit Assessment

To qualify for a secured second-charge facility, lenders will need to understand your credit history. As part of our packaging process, we will guide you through the necessary credit checks.

Before we run a formal search, you can check your own credit file to ensure all information is accurate and up to date. Get your free credit search here. It’s free for 30 days and costs £14.99 per month thereafter if you don’t cancel it. You can cancel at anytime. (Ad)

We use this credit information alongside your portfolio details to present a robust application to the chosen lender, helping to secure a Decision in Principle (DIP).

Step 4: Valuation and Property Underwriting

Because this facility is secured against your residential buy-to-let property, the lender must confirm the property’s value and the equity available after your first-charge mortgage is taken into account.

The lender will typically instruct a valuation. This may be a physical valuation by a surveyor or, in some cases, an automated valuation model (AVM) if there is plenty of equity. This step confirms how much credit the lender can safely extend. It is important to note that your property may be at risk if repayments are not made. Defaulting on a secured facility can result in serious consequences, including legal action, repossession of the property, increased interest rates, and additional charges.

Step 5: Legal Underwriting and Documentation

Once the property valuation is accepted, the legal work begins. Because the revolving credit facility will sit as a second charge, the lender’s legal team will need to obtain consent from your existing first-charge mortgage provider.

Our experienced team at Promise Money helps manage this communication, chasing lenders and solicitors to keep the process moving as quickly as possible. You will receive a formal offer detailing the facility limit, interest rates on drawn balances, and any legal fees. Once you review, sign, and return the legal charges and mortgage deed, the facility can be formally established.

Step 6: Facility Activation and Your First Drawdown

Once the legal second charge is registered, your revolving credit facility is active. This is where the true flexibility of the product shines.

Unlike a standard bridging loan where you receive all the money at once and pay interest on the whole sum, this facility acts as a standby fund. You only pay interest on the money you choose to draw down. When you identify a refurbishment opportunity or need to cover an unexpected cost, you can request a drawdown. Once arranged, requested funds can typically be drawn and deposited into your account within 24 to 48 hours, giving you the purchasing power of a cash buyer.

People also asked

Is a landlord revolving credit facility secured or unsecured?

It is always a secured facility, established as a second charge against a residential buy-to-let property. It is not an unsecured business loan or a personal credit card.

How does this facility compare to a bridging loan?

Bridging loans are typically single-use contracts where interest often rolls up, whereas a revolving credit facility allows you to draw, repay, and draw funds again over time, only paying interest on active balances.

Can I use this facility if I already have a mortgage on my BTL property?

Yes, this facility is specifically designed to sit behind your existing first-charge mortgage as a second charge, meaning you do not have to disturb your current mortgage rate.

What happens if I cannot make the repayments?

Your property may be at risk if repayments are not made. Defaulting could lead to legal action, additional charges, higher interest rates, and potentially the repossession of your buy-to-let property.

Are there restrictions on what I can use the funds for?

The funds are typically used for property-related business needs, such as auction deposits, refurbishments, EPC upgrades, void period cash flow, or bridging gaps during remortgages.

How quickly can I access the money once the account is set up?

Once the initial legal setup is complete, future drawdowns can typically be processed and sent to your bank account within 24 to 48 hours.

Getting Started with Promise Money

Arranging a secured second-charge revolving credit facility requires specialist knowledge of the specialist BTL market. At Promise Money, we use our status as an FCA-regulated broker to assess your portfolio and match you with the right lender. To learn more or start your application, visit the Financial Conduct Authority register to verify our credentials, call our team on 01902 585020, or visit our dedicated hub at promisemoney.co.uk/landlord-revolving-credit-100.