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Phil Scott the mortgage centre
Author: Phil Scott -Director
Updated on April 16th, 2024

Secured Loans for Buy-to-Let

A Buy-to-Let (BTL) secured loan is an alternative to a Buy-to-Let remortgage, allowing you to borrow equity against a property you already own. Usually, it costs more and includes higher fees compared to a remortgage.

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Why choose to have a secured loan?

Secured loans can be a cheaper alternative for those tied into existing mortgage deals. People may seek extra funds for debt consolidation, property purchases, or home improvements. When thinking about taking on more debt, it’s crucial to think about the future financial impact and consult a financial adviser.

Read Our Buy to Let Guide

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Fill out our quick and easy Buy to Let mortgage calculator below. We only require a few details to see how much you may be able to borrow.


Types of Buy-to-Let secured loans

1. Second Charge Mortgages

  1. How it works: A second mortgage placed on your Buy-to-Let property, in addition to your existing mortgage. This means you’ll make payments on both your original mortgage and the secured loan.
  2. Pros: Can offer lower interest rates than unsecured loans because the property acts as security. You can keep your existing mortgage if it has a good deal.
  3. Cons: Increases your monthly costs as you’re repaying two mortgages. Your property is at risk if you can’t keep up with repayments.

2. Homeowner Loans

  1. How it works: Secured against your residential home rather than the Buy-to-Let property itself.
  2. Pros: Can be useful if your Buy-to-Let property doesn’t have enough equity yet, or if your main mortgage rates are favourable.
  3. Cons: Your primary residence is at risk if you can’t repay. Can have higher interest rates than main first charge mortgages as lenders consider them riskier.

3. Commercial Secured Loans

  1. How it works: Designed for larger loans and properties that don’t fit traditional Buy-to-Let mortgage criteria (e.g., HMOs, commercial properties).
  2. Pros: Can offer access to significant borrowing amounts, potentially suitable for complex projects.
  3. Cons: Often have higher interest rates and more complex arrangements and fees compared to residential BTL mortgages.

4. Bridging Loans

  1. How it works: Short-term, high-interest loans typically used to purchase a BTL property quickly (e.g., at auction) before arranging a longer-term mortgage.
  2. Pros: Speed and flexibility for fast transactions.
  3. Cons: High cost, intended as a temporary solution with a clear exit strategy (like refinancing to a traditional mortgage).

Factors to think about when considering a Buy-to-Let secured loan include:

  1. Criteria will vary across lenders. Factors like your credit score, rental income, existing debt, and property value will be evaluated.
  2. Loan-to-Value (LTV): This determines how much you can borrow relative to the property’s value. Secured loans might offer higher LTVs than standard BTL mortgages.
  3. Interest Rates: Rates can be fixed, variable, or tracker, with secured loans potentially offering lower rates than unsecured options.
  4. Fees: Expect arrangement fees, valuation fees and potentially legal fees.

Before choosing a secured loan, consult a mortgage broker who specialises in Buy-to-Let secured loans. They can help you find the right product for your specific circumstances.

Ensure you fully understand the risks of using your property as security and your ability to manage the repayments.

The Mortgage Centres offers expert advice and guidance to help you secure the best Buy-to-Let secured loan deal.

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Applying for secured loans for a Buy-to-Let rental property

Are you looking to secure funding for your next Buy-to-Let investment? Let us streamline the process!

Our expert team specialises in matching landlords with the perfect Buy-to-Let secured loan solutions. Here’s how it works:

  1. Get in touch: Reach out to us by phone, email, or through our online form. We’ll gather some initial information to understand your specific needs.
  2. In-depth consultation: A dedicated broker will delve into your financial situation, investment goals, and the property in question. We’ll discuss the various secured loan options available and help you determine the best fit.
  3. Tailored search: We leverage our extensive lender network to identify the most competitive rates and terms that align with your requirements. We’ll present you with clear, jargon-free comparisons.
  4. Application support: Once you’ve selected a lender, we’ll guide you through the process, ensuring everything is submitted correctly and efficiently.
  5. Ongoing liaison: We’ll communicate with the lender on your behalf, keeping you informed every step of the way and advocating for a smooth, successful approval.

Experience the difference with a dedicated Buy-to-Let secured loan broker. Contact us today and let’s unlock the potential of your property portfolio!

Buy-to-Let secured loan interest rates

Buy-to-Let secured loan interest rates vary based on factors like your credit score, loan-to-value ratio (LTV), and the lender. While generally lower than unsecured loans, they may be slightly higher than first-charge mortgage rates. Expect a range, with the best deals reserved for those with excellent credit and low LTVs.


  • How long does it take to get a Buy-to-Let secured loan?
  • What can a Buy-to-Let secured loan be used for?
  • What are the risks of Buy-to-Let secured loans?
  • What are the criteria for Buy-to-Let secured loans?

Getting a Buy-to-Let secured loan can take several weeks. Factors like lender speed, property valuation, and your application complexity can all influence processing time. Be prepared for a timeframe of around 4-5 weeks, but some cases may be faster or slower.

Buy-to-Let secured loans can be used for various purposes, including raising a deposit for a new property, renovating existing properties, debt consolidation, business investment, or even covering unexpected expenses.

For more information speak to our specialist brokers.

Buy-to-Let secured loans pose three primary risks to investors:

  1. Repossession: Your property is the security for the loan. If you fail to meet repayments, the lender could repossess the property.
  2. Higher interest rates: Secured loans may have higher interest rates than traditional Buy-to-Let mortgages, especially if you have a poor credit history.
  3. Fees: There can be significant arrangement, valuation, and legal fees associated with secured loans.
  4. Impact on equity: Taking out a secured loan reduces the amount of equity you have in your property.

The specific criteria for Buy-to-Let secured loans can vary between lenders, but here are some common factors:

  1. Equity: You’ll generally need at least 20-25% equity in your Buy-to-Let property to act as security for the loan.
  2. Income: Lenders will assess your affordability – both your personal income and the rental income generated by the property.
  3. Credit history: A good credit score increases your chances of approval and securing the best interest rates. However, some lenders specialise in working with applicants with less-than-perfect credit.
  4. Rental yield: Most lenders will require the rental income to cover the mortgage repayments by a specific margin (usually around 125%-145%).
  5. Property type: Certain property types (e.g., HMOs, ex-council properties) may have greater restrictions or require specialist lenders.

These are general criteria and lenders have their individual requirements. Speak to our specialist brokers that specialise in Buy-to-Let secured loans. Our secured loan experts can provide the most up-to-date and tailored advice for your circumstances.

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