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BTL second charges – missed opportunity?

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BTL second charges

The rise of buy-to-let continues apace, despite a challenging few weeks for the sector. The government’s proposed plans to reduce landlord tax relief may have some investors concerned for the future but for the present at least confidence in the sector is stronger than ever. Indeed, according to the most recent figures from the Council of Mortgage Lenders buy-to-let lending in June was up on both the month before and the same period last year.

Perhaps as further proof of the buoyancy of the sector, a number of second charge lenders are moving in to the buy-to-let arena, having spotted the potential. There are now 14 lenders operating in the buy-to-let market with Precise the latest to do so and rate start at 5.79%.

Understanding Market Rates & Repayment Terms

Buy-to-let presents brokers with a huge opportunity however I believe a large number are missing out on this opportunity because they’re either unaware of the uses of seconds in this area or they still hold ill-conceived misconceptions about the industry.

According to figures from the Council of Mortgage Lenders, around 60% of new business in the buy-to-let sector is remortgage as opposed to purchase. Those landlords remortgaging to raise the funds to buy additional properties and increase their portfolio may well have attractive mortgage rates at present that they’d rather not give up. A second charge allows an investor to secure funding against one of his rental properties to buy another property or, perhaps, to complete necessary works on a property in order to increase its rental potential.

Key Criteria & Application Guidance

And the benefits go beyond helping a landlord to maintain a favourable rate. The buy-to-let market is fast-paced and investors needs to move quickly. The remortgage market cannot compete with the second charge sector when it comes to speed. And while the bridging market may offer some competition for second charges in terms of efficiency, the rates and terms on offer are much less favourable.

Second charge buy-to-lets can be approved even when there is no tenant in place or when the borrower has adverse credit. They’re available up to 100% LTV and can be arranged based on rental income only with no additional income required.

Secured loans now offer an efficient, transparent and cost effective alternative for investors looking to build and improve their portfolios and, with the industry set to be brought in line with its first charge cousin in the first quarter of next year, it’s imperative that brokers start giving it due consideration.

I don’t think we will see the growth of the buy-to-let seconds market slow at any time soon. If you’re not willing to embrace it you risk alienating not just your clients but your regulator too.

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Intermediary Guidance for Btl Second Charge Opportunity

Structuring competitive terms on btl second charge opportunity for your clients requires direct access to specialist underwriters. In addition, our intermediary lending desk works directly with over 90 specialist lenders across the UK.

Consequently, partnering with Promise Money ensures whole-of-market broker access, transparent procuration fees, and rapid decisions in principle for your client cases.

Specialist Underwriting & Whole-of-Market Access

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Key Takeaways: Btl Second Charge Opportunity Broker Briefing

Additionally, partnering with Promise Money gives intermediaries whole-of-market access across 90+ specialist second charge lenders.

Furthermore, direct access to our specialist underwriting desk protects client relationships while guaranteeing transparent and competitive proc fees.

Consequently, complex borrowing scenarios—including high LTVs, adverse credit, or complex income—are structured efficiently without delays.

Therefore, introducers can submit case details directly online or via phone to secure rapid Decisions in Principle.

Specifically, second charge homeowner facilities are assessed with commercial speed to meet critical funding deadlines.

Moreover, comprehensive lending criteria checklists ensure client applications are fully structured prior to lender submission.

In addition, dedicated underwriter communication guarantees updates at every milestone from enquiry through to completion.

Crucially, keeping existing low-rate primary mortgages completely untouched saves your clients thousands in remortgage penalty fees.

In practice, our intermediary team handles valuation queries and legal liaisons so you can focus on client advisory.

Above all, whole-of-market access allows you to place non-standard cases that mainstream high street lenders routinely decline.

As a result, your brokerage delivers reliable capital-raising solutions even for complex homeowner borrowing requirements.

After all, working with an established specialist credit broker with 35+ years experience protects your professional reputation.

Meanwhile, dedicated broker portal tools provide real-time tracking on survey sign-offs and fund disbursements.

Indeed, high LTV options up to 100% or more allow clients to unlock needed capital without moving home.

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