This is a UNIQUE Low Cost, revolving credit Buy To Let loan to replace bridging finance.

“Use it when you need it – repay it when you don’t.
Just like an overdraft”

So why use a revolving credit Buy to Let Loan instead of bridging?

• Are you a landlord looking to raise additional cash quickly and cheaply?
• Do you want to buy at auction?
• Maybe you want to raise deposits or cover the costs of a refurbishment or conversion?

Wouldn’t it be great if you could arrange a line of revolving credit where you only pay for what you use and can repay or draw down money without penalty or additional fees?

• Forget the scramble of trying to arrange a last-minute bridging loan
• Forget the high costs of using bridging, paying it off and then having to repeat the process on your next property

With rates from around 6.5% and this level of flexibility you may never need to use bridging finance ever again. And the money is available instantly when opportunity comes your way.

The process is fast and easy so you can get indicative terms and initial acceptance virtually immediately. Thereafter, the lender can use automated valuations, Digital ID, Esignature agreements and open banking to complete loans in as little as five days. 

Next Steps to understanding your revolving credit buy to let loan

• Get in touch – Use the Secured Loan enquiry form. (NOTE The £500 valuation cash back is a limited time offer attached to this promotion)
• Tell us about your property offered as security – (Value, property type, mortgage amount, lender and repayments plus rent received)
• We give you indicative costs and rates
• If it works for you, you can make an application

Does an interest only revolving credit facility up to £1 million, which works just like a credit card, sound useful?

Complete the short Secured Loan Enquiry Form and we will assess how much you can borrow and the costs.

Briefly, here’s how a revolving credit buy to let loan facility works:

• A reusable facility to purchase / refurbish investment property
• Avoid the repeat costs of bridging plus lower rates and fees
• Faster and more flexible than a BTL remortgage
• It is a 2nd charge revolving credit facility
• Secured on single / multiple Buy to Lets, or HMO’s
• No external solicitors – faster and cheaper than bridging

Products similar to this buy to let loan have been around for a couple of years. However, we think this one is faster, easier and cheaper. 

Unlike others it’s designed with a really low touch fast process so you can get indicative terms and a completion really quickly. It is also available to both limited company landlords and landlords who own buy to let property personally. Others are not.

Think for a moment how you might use, for example, a £300,000 loan which allows you to draw down cash and repay it as often as you like during the facility term without penalty and only pay interest on the cash you are using.

The loan is secured by way of a second charge across one or or a number of buy to let properties. This means you don’t need to change your current mortgage arrangement, lose your existing fixed rates  or remortgage multiple properties with multiple lender fees to raise additional cash 

Key Benefits

• Unlimited drawdowns and repayments
• Min net drawdown (after deducting any fees) £1,000.
• No drawdown or repayment fees
• Zero non utilisation fee – Only pay for drawn funds
• Facility renewable after 12 months
• Desktop valuations accepted to keep the costs down
• In house legals, electronic ID, open banking available to facilitate payouts in days
• No minimum personal income requirement for buy to let applications

On a single buy to let or HMO property you could borrow up to 75% loan to value which is effectively a top up facility sitting after your current first mortgage.

Alternatively you could take a facility secured over up to 10 buy to let properties. Using automated valuations this can save a fortune in set up costs and we can check out the numbers really quickly so you know what’s available without paying a penny for a valuation.

Main Criteria for this revolving credit buy to let loan

• No serviceability stress test on the first mortgage – landlords can borrow more
• Portfolio and non-portfolio landlords / Personal and SPV owned accepted
• Security accepted – standard residential BTL and licenced HMOs up to six beds
• Debt service at 125% for standard buy to lets and 160% for HMOs
• Can’t currently mix standard buy to lets and HMOs within the same facility – two facilities can be created
• Must be on standard AST’s – no corporate lets, cash rental, holiday lets or CBTL’s
• No flats over commercial – nearby commercial is fine
• England and Wales only
• Consent for a second charge from first mortgagee required
• Credit – max 2 CCJ’s in last 3 years – max £100 unsatisfied or £500 satisfied

Can you secure a revolving credit facility against your main residence?

Many landlords don’t have sufficient equity within their Buy To Let portfolio and ask if they can secure this type of loan against their main residence.

The short answer is yes. We have another product which is essentially a line of credit or overdraft which gives the similar options to flex the balance up and down without penalty for the first five years before it converts into a term loan. It is available up to 85% loan to value as a second charge registered behind the existing mortgage. 

As it is secured against a borrower’s main residence, affordability is assessed on their personal taxable income with maximum lending (including the first mortgage) up to 6 x the gross household income. 

Can you get a revolving credit buy to let loan without full proof of income?

Another common question for landlords and property investors is “can I access this type of product without proving all of my rental or personal income.”

In some circumstances, the answer is yes. We have another lender, and a different product, which will consider second charge loans for business purposes secured on the borrowers main residence. They also offer the same facility secured by first charge on commercial investment property and buy to lets. The loan to value is more like a 65% bridging loan but it still allows the flexibility to draw down and repay the loan as required. As you might expect, the rates aren’t as competitive as a product where the income is proven income. However it compares very well against  bridging loans and provides a far more flexible facility for up to 2 years with an option to renew. 

If one of these flexible credit facilities might allow you to raise capital quickly when you need it and reduce your cost when you don’t, please get in touch with the team at Promise Money.

Talk to a Promise Money adviser for more details

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