Secured loan lender Central Trust has launched into the buy-to-let market with variable rates starting at 9.99% and 3-year fixed rates at 10.99%.
Its new product is aimed at landlords looking to release equity in existing properties without remortgaging.
With a maximum LTV of 75% loans between £3,000 and £70,000 can be taken out for a wide range of purposes, while borrowers can use the rental income they receive as proof of repayments.
The Watford-based lender hopes the new products will offer more flexibility to landlords looking to capitalise on the rental market.
Buster Tolfree, commercial director of Central Trust, said: “Our new BTL products offer a range of unique customer-focussed features. Simply put, nobody else in the market offers BTL second charges to 75% LTV, on a fixed rate basis or with only a 58 day ERC and unlimited overpayments.
“These features place us right at the cutting edge for BTL second charges. The reaction from our introducers has been amazing, and we look forward to launching further innovative products in the future”
Tom Garratt, head of intermediary channel at The Loans Engine, added: “As consumers become more concerned about the imminent increase in the base rate, we have seen a significant uplift in the popularity of fixed rates on secured loan products.
“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 but the introduction of a fixed rate term on a second charge buy-to-let product, certainly raises the bar and will prove to be popular amongst our introducers.”