Rates start at just 5.95% and the products are targeted at prime landlords wishing to raise capital from the equity in their buy to let portfolios. Up until now there have been very few options for these customers other than remortgaging, but in many cases it would make more sense to take a buy to let second charge loan. Precise Mortgages estimates that the buy to let market is to hit £30bn of gross advances this year and approximately 50% of that will be remortgages.
The range is available on an interest and capital and interest-only basis to align with first charge mortgages, and is designed to offer a cheaper option than remortgaging for landlords.
It also offers the ability to access equity in their property portfolio for any purpose even when their first charge has an ERC.
Alan Cleary, Managing Director of Precise Mortgages says:
“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.”
