Blemain Finance has claimed that buy-to-let second charge lending has risen by 40% in the first half of 2012 compared to 2011.
The lender has reported a consistent rise in the number of buy-to-let second charge cases placed in the last six months.
“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,” said Gary Bailey, director at Blemain Finance.
“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.”
Bailey added: “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 £150,000 so these are great tools for people looking to purchase more properties.”