Buy to let second charge loans up by 40%

Shawbrook Bank

 

Buy-to-let second charge lending has increased by 40% in the first half of 2012 compared to 2011, according to figures from Blemain Finance.

The specialist lender has seen a steady increase in the number of buy-to-let second charge cases placed in the last six months showing that landlords are continuing to reinvest into the market.

This comes at a time where the consistently tight mortgage criteria of the high street banks are meaning more people than ever are renting over buying. Coupled with house prices being set to remain relatively constant over the next year or so, it’s a good time for landlords to capitalise on this opportunity.

Gary Bailey, director at Blemain Finance, said:

“Securing a loan on a rental property is an effective means of raising funds for a variety of reasons, such as renovation of the property or raising the capital needed to place a deposit on another buy-to-let property.

“By the owner releasing equity in their current buy to let property they can use the funds as the deposit on their next buy to let purchase. This is useful, for example when buying at auction.

The customer has the funds for the deposit already to hand and this can then be coupled with Blemain Finance’s pre-approved auction purchase product to buy the new property. The plan includes a property valuation bypass, with no valuation needed for properties less than £150k so these are great tools for people looking to purchase more properties.”

 

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