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.

Loans secured on buy to let property
Secured loans for buy to let properties

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.


Can I borrow money against my buy to let property?

Yes, you can. Buy to let secured loans are designed specifically to use rental properties as security. Your acceptance for the loan will be based on a number of different factors such as the equity in the property and the affordability of the loan i.e. your ability to make the monthly repayments.

What can a buy to let secured loan be used for?

These loans can be used for anything legal! Some of the most popular reasons include debt consolidation, home improvements or as a deposit against a new property.

Am I eligible for a buy to let secured loan?

To be eligible for a buy to let secured loan, you must be aged 18-85 and own a rental property which can be used as security, in case you fail to make your repayments.

How do you borrow money against a rental property?

The best way is to take out a “buy to let secured loan”. These loans use a rental property as security against the amount you borrow. This means that you may be able to borrow a larger amount of money, get a longer repayment period, or overcome an issue with your credit. It’s important to remember that any property that you use as security could be repossessed if you fail to repay the loan.

Can I borrow money against an investment property?

Yes. If you have invested in a property and rent it to a third party, you may be able to qualify for a buy to let secured loan. This type of loan uses your investment property as security against the loan.

Can I borrow against rental income?

Yes. To get a buy to let secured loan (i.e. a loan secured against a rental property) there must be enough collateral in the rental property, and you must be able to demonstrate that you can afford to repay the loan. The rental income from the property will be taken into account when looking at the affordability. But if the rent from the property is not enough to cover the repayments, you will need to have additional income to qualify for the loan.

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