Can You Get a Secured Loan on a Buy-to-Let Property?

Secured Loans on Buy-to-Let Properties — Is It Possible?

Yes, it is possible to take out a secured loan (second charge) against a buy-to-let property, although the lender market is more limited than for residential homeowner loans. A number of specialist lenders on the Secured Loan Hub panel specifically accept buy-to-let properties as security, making it a viable way for landlords to raise capital without remortgaging.

Common reasons landlords take a second charge on a BTL include funding renovations to increase rental yield, purchasing additional properties, consolidating personal debt, or covering tax liabilities following changes to mortgage interest relief.

Key Differences from Residential Secured Loans

There are a few important differences when securing a loan against a buy-to-let property rather than your own home. First, interest rates tend to be slightly higher — typically 1–3% above equivalent residential rates — because lenders perceive additional risk with investment properties.

Second, the maximum LTV is usually lower. While residential secured loans can sometimes go to 90% combined LTV, most buy-to-let second charges cap at 75–80% combined LTV. This means you need more equity in the property.

Third, affordability is assessed differently. Lenders will look at rental income from the property (usually requiring rental coverage of 125–145% of the mortgage payment) alongside your personal income. If you're a portfolio landlord with four or more mortgaged properties, some lenders will want a view of your entire portfolio.

Lender Criteria for BTL Secured Loans

Most lenders require that the buy-to-let mortgage is in your personal name (not a limited company SPV) for a standard second charge. If your BTL is held in a limited company, options exist but are more restricted and typically fall under commercial lending.

You'll generally need a minimum of 20–25% equity in the property after the new loan is added. The property must be tenanted or available for let — most lenders won't lend against a vacant property that isn't being marketed. An up-to-date tenancy agreement and recent rental valuation may be required.

Standard eligibility criteria also apply: UK residency, minimum age of 21 (some lenders 25), and a satisfactory credit history — though adverse credit BTL second charges are available from specialist lenders at higher rates.

Typical Rates and Costs

As of early 2026, buy-to-let secured loan rates start from around 7.5% for clean-credit applicants with low LTVs, rising to 14–16% for higher LTVs or adverse credit scenarios. Arrangement fees are typically £295–£995, and most lenders require a full property valuation (£250–£500 depending on property value).

Because BTL secured loans are not regulated by the FCA under consumer credit rules (they fall under the FCA's separate BTL regulatory framework), the process can be slightly faster, but it also means you may have fewer consumer protections. Make sure you work with an FCA-authorised broker who can advise you properly.

Using a Secured Loan to Grow Your Portfolio

Many landlords use a second charge on an existing BTL to fund the deposit on a new investment property. This can be more cost-effective than remortgaging — particularly if your current BTL mortgage is on a competitive fixed rate that you'd lose by remortgaging, or if early repayment charges apply.

For example, if you own a BTL worth £300,000 with a £180,000 mortgage, you could potentially raise £40,000–£60,000 via a second charge to use as a deposit on another property, without touching your existing mortgage deal.

Speak to our team to explore your options — our service is free, and we'll search our full lender panel to find the best deal for your situation.