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What is a Buy to Let Secured Loan for consumers?
A buy to let mortgage and a buy to let secured loan are similar, in that they are both a type of mortgage. However, they do have their differences.
At Central Trust we offer consumer buy to let secured loans for accidental or non-professional landlords. However, if you are a professional landlord looking for a standard buy to let mortgage, our sister company Mercantile Trust can help.
An accidental landlord refers to an individual who didn’t purchase the property with the intention of letting it out, but circumstances led them to become a landlord.
However the circumstances in which someone becomes an accidental landlord varies.
For example, someone who currently owns their residential home, needs to relocate due to their work commitments, and may not wish to sell their property. Instead they decide to rent it out, as oppose to the leaving the property empty for a long period of time.
This individual would be classed as an ‘accidental landlord’ and would therefore need a specialist consumer buy to let mortgage.
Other lending scenarios include:
- • A first time landlord that has inherited a property
- • An individual that inherits a property they used to reside in
- • Someone who wishes to let their current main residence to assist with the purchase of their future residence (where they have no other investment properties in the background).
- • An individual that decides to move in with a partner
- • Someone that goes travelling for a long period of time and wants to temporality rent out their property
How does it differ from a standard Buy to Let Mortgage?
Standard buy to let mortgages are used by landlords looking to purchase a rental property or to build their portfolio for investment purposes.
However, not everyone that becomes a landlord sets out with the intention to do so, which is why buy to let secured loans are available.
Buy to let secured loans have more regulatory protections than a standard buy to let mortgage. They offer additional comfort to those accidental landlords, or non-professional landlords who have found themselves running a rental property.
It’s important to note, that there are less lenders offering buy to let secured loans, in comparison to standard buy to let mortgages.
I have a poor credit history, will I still be accepted?
Having a poor credit profile doesn’t mean that you will struggle to obtain a buy to let secured loan, however you may find there are less lenders that can help you.
Although some lenders may not be able to assist, we have and can help individuals with poor credit profiles. We consider all credit histories including those that have:
- — Accounts in defaults
- — CCJ’s (county court judgement)
- — Debt management plans
- — Cautions or restrictions against their property
- — Missed payments (maximum of 2 within 12 months)
- — Historic IVA (individual voluntary arrangement) which is now settled
How do I apply?
Applying for a buy to let secured loan as a consumer is a straight forward process which can be completed online by following our application process, or by calling one of our qualified advisors using the number at the top of this page.
It’s important to remember that your property may be repossessed if you fail to repay your mortgage.