I had lunch the other day with a guy who gets me a few UK buy to let properties and I met one of his colleagues, Andy, who has been in the loan/2nd charge lending market for 10 years. I said it’s a shame that all these lenders only lend on your own residential property and not your buy to let properties.
He first started to nod and agree with me but then he dismissively said he knew of one lender but they restrict you to only 2 buy to let properties. I asked about redemption penalties and he said it was restricted to one month’s payment and its restricted to 75 per cent loan to value.
I thought I had to tell you about this because if you need finance quick and your current buy to let mortgage has a hefty redemption penalty then you can keep your current buy to let mortgage and access some of the equity using this 2nd charge loan. Once the tie in period has finished on the buy to let mortgage so there is no redemption you can get a new buy to let mortgage to redeem the original buy to let mortgage AND the 2nd charge loan with only a 1 month penalty.
This is perfect if you want to get access to that equity now without having to wait for your tie in to expire. Why not look into 2nd charge loans on your investment properties?
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Posted on: 26th Feb 2008