BTL funding available at 100% LTV with a second charge

BTL funding available at 100% LTV with a second charge

10:40 AM, 1st July 2015, About 7 years ago

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Challenger bank Shawbrook will fund 100% for Buy to Lets. They will lend up to 75% Loan to Value (LTV) on the property being purchased and then take a second charge over another property if there is enough equity up to a total of 70% of its value.Shawbrook

For example if the second property was valued at £200,000 and had a first charge mortgage of £100,000 then £40,000 of the available equity could be used to contribute to a 100% mortgage on the first property.

This facility has many uses such as:
• Auction Purchases
• Property refurbishment
• Where the existing mortgage on the second property has a very attractive interest rate, maybe 1% over base and you don’t want to lose that rate
• Insufficient cash for a deposit

This facility is available for individual properties or portfolios and the interest charged is the same for the second charge as for the first charge mortgage.

Recent Case Study:

Reader from Leicester owned a portfolio of 9 BTL properties in and around the surrounding area. He had the opportunity to purchase another property, but was short of deposit funds. The purchase price was £180,000 and he was offered a mortgage of £135,000 with Shawbrook, leaving a balance of £45,000 required. He was fortunate that one of his properties was worth £320,000 and had a mortgage of £160,000. He was understandably reluctant to re-mortgage the property on which he was enjoying an interest rate of only 1.2% over base. Shawbrook were happy to advance an additional £64,000 on a second charge. This allowed the client to purchase the property and gave him an additional £19,000 which he used to improve both of the properties.

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