Precise Mortgages has today launched a new range of buy-to-let second charge loan products with rates starting at 5.95 per cent.
The offer is targeted at prime landlords looking to release equity from their existing buy-to-let properties. So far, these customers have had very limited options to raise capital other than remortgaging. Precise Mortgages estimates that the buy-to-let market is to hit £30 billion of gross advances this year and almost half of that will be remortgages.
However, in many cases taking out a second charge loan is a better option than remortgaging, the specialist lender says.
Alan Cleary, managing director of Precise Mortgages comments:
“We expect to see approximately 108,000 buy-to-let remortgage transactions this year and many of these landlords may have been financially better off if they had access to a competitive buy to let second charge loan product instead. Now they have.”
Highlights of the new range include:
- Available on Interest and capital and interest only basis to align with first charge mortgages
- Offers a cheaper option than remortgaging for many landlords
- Ability to access equity in their property portfolio for any purpose even when their first charge has an ERC
- Faster than a remortgage. A typical remortgage can take 8 weeks, a second charge can complete within one week of application
- Doesn’t force a landlord to remortgage a first charge with a cheap revert rate, often BBR + 1.50% onto a loan with a much higher revert rate.
