The specialist lender has seen a steady increase in the number of buy-to-let second charge cases placed in the last six months showing that landlords are continuing to reinvest into the market. And tight lending criteria from the high street banks means more people than ever are renting over buying.
Gary Bailey, director at Blemain Finance, said: “Securing a loan on a rental property is an effective means of raising funds for a variety of reasons, such as renovation of the property or raising the capital needed to place a deposit on another buy-to-let property.
“By the owner releasing equity in their current buy-to-let property they can use the funds as the deposit on their next buy-to-let purchase. This is useful, for example when buying at auction.
“The customer has the funds for the deposit already to hand and this can then be coupled with Blemain Finance’s pre-approved auction purchase product to buy the new property. The plan includes a property valuation bypass, with no valuation needed for properties less than £150k so these are great tools for people looking to purchase more properties.”