BTL Second Charge Guide - Flipbook - Page 2
THE OPPORTUNITY
Why Buy-to-Let second charges?
For landlords sitting on significant equity across their rental portfolios, a second charge mortgage offers a way to access that
capital - without disturbing a favourable first charge rate, triggering early repayment charges, or restarting the remortgage
clock.
The UK second charge market reached £2.14 billion in new lending in 2025, growing 24% year-on-year according to the Finance &
Leasing Association, with over 41,700 new agreements completed. Average loan sizes have risen for three consecutive years, reaching
£51,198. The sector has been identified as the fastest-growing segment in post-pandemic property finance, reflecting a structural shift in
how property owners access equity.
Yet less than 5% of all second charge lending currently targets Buy-to-Let landlords - a significant gap considering many landlords
locked in competitive first charge rates during the low-interest era that they are understandably reluctant to give up. At the same time,
their properties have appreciated in value, creating equity that sits idle. A Buy-to-Let second charge lets them put that equity to work
without remortgaging.
Unlike a remortgage, the existing first charge stays in place. The landlord simply takes additional borrowing secured behind it - keeping
their current deal intact while unlocking the capital they need.
Why work with a specialist broker like Loans Warehouse?
Buy-to-Let second charge lending is a fast-growing specialist area, and working with an experienced broker ensures your
clients get the right product, competitively priced, with a smooth journey from application to completion. Loans Warehouse
provides dedicated second-charge expertise, helping you navigate Scroll's product range, package cases efficiently, and
access exclusive support throughout the process.
What are landlords using the funds for?
The flexibility of a second charge means proceeds can be used for almost any legal purpose. Based on real lending activity, the most common usecases include:
Protecting a favourable first charge rate
Energy efficiency and EPC compliance
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