Overview of BTL secured loans
Overview of BTL secured loans
I predict that this year is going to see a massive increase in BTL secured loans and lenders are already coming to the party. A year ago there were a couple of lenders. Now there are six and more are lining up to join in.
Below is a summary of the latest key features which I hope you find helpful.
- Complex
1st and 2nd Charges
75% LTV on purchase
70% remortgages and 2nd Charges
Rates start from 8.45%
Only look at arrears on security property, ignore arrears on other properties
Interest only available over £25000
Rental income must be 110% or 120% of secured loan lending – subject to plan
Can use expected rental income if no AST is in place (use 90% of that figure)
Accept adverse, Expats, no additional income, non standard properties.
All adverse over 12 months old is ignored. - Heavy adverse
LTV – 70%
£100,000 max loan
Unlimited adverse
Regulated agreement – Lower ERCs – a good short term solution
Full income and expenditure including the rental as qualifying income
Rate 15% - Higher LTV
1st and 2nd Charges
Up to 85% LTV
Rates from 9.90%
Loans over £100,000 on referral
Min 120% rental coverage, full income and expenditure over 70% LTV
Cross charges considered to support LTV
HMO’s up to 70% LTV
I hope to see more prime products and lower rates in the near future – I’ll keep you posted
To discuss a potential case speak to your underwriter on 01902 585052 or source a BTL second charge here.
Steve Walker, Managing Director, Promise Solutions
01902 585052
Promise Money is a broker not a lender. Therefore we offer lenders representing the whole of market for mortgages, secured loans, bridging finance, commercial mortgages and development finance. These loans are secured on property and subject to the borrowers status.
More than 50% of borrowers receive offers better than our representative examples
The %APR rate you will be offered is dependent on your personal circumstances.
Mortgages and Remortgages
Representative example
Borrow £270,000 over 300 months at 7.1% APRC representative at a fixed rate of 4.79% for 60 months at £1,539.39 per month and thereafter 240 instalments of £2050.55 at 8.49% or the lender’s current variable rate at the time. The total charge for credit is £317,807.66 which includes £2,500 advice / processing fees and £125 application fee. Total repayable £587,807.66
Secured / Second Charge Loans
Representative example
Borrow £62,000 over 180 months at 9.9% APRC representative at a fixed rate of 7.85% for 60 months at £622.09 per month and thereafter 120 instalments of £667.54 at 9.49% or the lender’s current variable rate at the time. The total charge for credit is £55,730.20 which includes £2,660 advice / processing fees and £125 application fee. Total repayable £117,730.20
Unsecured Loans
Representative example
Annual Interest Rate (fixed) is 49.7% p.a. with a Representative 49.7% APR, based on borrowing £5,000 and repaying this over 36 monthly repayments. Monthly repayment is £243.57 with a total amount repayable of £8,768.52 which includes the total interest repayable of £3,768.52.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME
REPAYING YOUR DEBTS OVER A LONGER PERIOD CAN REDUCE YOUR PAYMENTS BUT COULD INCREASE THE TOTAL INTEREST YOU PAY. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Promise Money is a trading style of Promise Solutions Ltd – Company number 04822774Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG
Authorised and regulated by the Financial Conduct Authority – Number 681423The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages
Website www.promisemoney.co.uk