When a loan application for business purposes is denied by traditional loan vendors, banks, more specifically, you most certainly face a difficult situation. Many are uncertain on how should they proceed afterwards. Most obviously, you should try to find why your application was denied before deciding on what further steps you should take. If your buy-to-let family business will have to suffer from a denied loan application, you might be in some trouble, of course, if you don’t find a reliable alternative solution. Below are some pieces of information on second charge loans, the banking products that may help you the most to consolidate your portfolio.
Second Charge Loans – What Are Those?
If you’re a landlord, you may be familiar with the terminology. A second charge loan is a banking product similar to your everyday mortgage. In this case, the loan s secured against your property. Just similar to your first charge mortgage, they can be repaid over a long period of time, up to 30 years, in the case of those reliable vendors.
How Much Can I Borrow?
Generally, lenders that offer second charge buy to let loans allow a maximum of 75% of the loan value and applicants can get anywhere from $10,000 plus. The exact amount usually depends on several variables, the most relevant being the available equity on our property and how affordable the loan is as a whole. A secured loan broker will most likely be able to help you identify correctly how much can you get. They will also provide a personal quotation.
How Fast Can I Get My Loan?
Lenders for second charge on a buy to let property can arrange your loan quickly, generally within a couple of weeks. In those emergency cases, reliable vendors can issue your loan within 48 hours.
What Are the Benefits of These Loans?
Reliable vendors don’t ask for high volumes of paperwork, and if you find yourself in one of the following situations, you will most likely be eligible for a similar loan.
- These are accepted for semi-commercial properties, flats above shops and an array of other non-standard construction homes, as well as student let properties.
- Clients can opt for first and second charge options.
- You can enjoy rates of 75% LTV.
- You won’t need to prove your income or earnings registered.
- There is no minimum property valuation.
- These loans can be accessed by professional landlords and self-employed individuals.
- Even pensioners beyond the normal retirement age can enjoy such banking products.
There are many criteria that make these types of loans incredibly advantageous for an array of purposes, but especially for let property managers.
Keep in mind that high street banks aren’t the only institutions where you can find reliable loan solutions and products. Do your homework, discuss with various brokers and allow them to help you find the best financing solution for your own case. As you can easily observe, some financing solutions are indeed more advantageous than traditional ones.