As landlords look to protect cheap mortgage rates, we’re seeing an increase in buy-to-let second charge lending to finance portfolio expansions, carry out home improvements or purchase run-down properties for renovation purposes.

From 2023 to 2024 there’s been a sharp 60% increase in the buy-to-let second charge market. As a result, at Crystal Specialist finance we’ve seen a 10% increase in lending in 2024 compared to the previous year.

With a steady base rate under 1% for 12 years, those with a buy-to-let mortgage had easy access to cheap funds. However, with a shoot in rates borrowers are experiencing large repayments if they want to re-mortgage to capital raise. This is where buy-to-let second charge lending comes in, posing many benefits for your landlord clients.

• Landlords can still capital-raise while keeping a preferential first charge rate in place

• Avoid early repayment charges (ERCs)

• Typically, lower arrangement fees compared to a full remortgage

• Faster & more flexible than a remortgage

In an ever-changing market and with the Bank of England announcing the recent interest rate drop from 5% to 4.75% some worry that this will be the end of the second charge buy-to-let market. Whist this decline may slow demand, this product has too many uses to become obsolete.

Rest assured, the buy-to-let second charge market will continue to grow, and serve landlords that require flexible financial solutions.

At Crystal, we’re experts in sourcing specialist mortgages and are here to help you every step of the way in securing the best deal for your clients. Benefit from our expert team, fast response times and straightforward solutions.

Let us be your constant in an ever changing, unpredictable market.

Get in touch on 01827 337710 or enquire through our CrystalHUB for a quote today.