Secured loan with bad credit may be an option if you need to raise extra equity from your Buy to Let properties.
Over the last year I have spoken to many applicants who are existing landlords but were caught up with the recent financial crisis which has had an historic effect on their credit profile so I think its worth writing a bit on Secured Loans with Bad credit for Buy to let landlords.
I’m sure you’re aware that if you have bad credit buy to let mortgages are not that easy to find as there are only a handful of Lenders that will lend and they have quite strict criteria especially if there is adverse credit involved.
Getting a secured loan with bad credit for buy to let properties can be an option for you. However, it can come at a cost as they do carry higher rates and fees together with stricter early repayment criteria. Secured loans for buy to lets are generally a lot more expensive than your traditional secure loan, especially if you have historic credit problems such as missed mortgage payments, defaults and County Court Judgements so it is essential that you speak to a professional adviser who can look at all of your options.
Why you might want to take out a Secured loan with bad credit:
- Consolidate personal loans and credit cards.
- Historic adverse credit issues such as missed mortgage payments defaults and CCJ’s
- Keep existing first charge mortgage as it is on a good rate.
- Pay bills including HRMC tax returns. Many traditional mortgage lenders will not allow you to raise funds on this basis.
- To invest into business or other investments. Again, a lot of standard buy to let mortgage Lenders will not allow for this.
- Refurbish property where traditional mortgage funding is not available.
- Acquire or refinance commercial property. Can be a short term funding vehicle for other properties.
- Release capital from buy to let portfolio to fund further property purchases.
- Recently self-employed without accounts, but have proof of earnings.
- Need funds quickly as cannot wait for a remortgage process
For more information about Secured loan with bad credit , please contact us on 0207 993 2044 or alternatively complete the simple enquiry form on the top right hand side of this page.
Typical APRC 10.8% variable
NICHE ADVICE LIMITED IS REGULATED BY THE BY THE FINANCIAL CONDUCT AUTHORITY.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. ALL LOANS ARE SECURED ON PROPERTY AND ARE SUBJECT TO STATUS.
IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.
IF YOU CHOOSE A VARIABLE RATE LOAN THE COST OF YOUR PAYMENTS MAY INCREASE.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines.