Key market trends suggest that you’ve been arranging a number of BTL mortgages for your client base over the last 5 years. Despite changes to the tax regime, with returns on other investments such as cash and stocks hitting an all-time low, there is still value in including BTL’s in any investment portfolio.

In many cases, investors may benefit from purchasing via a SPV (a limited company formed especially for this purpose). The good news is, products such as second mortgages can be used to raise the funds to obtain the most favourable mortgage rates for your BTL client base.

Loans can be arranged against the investors own residential property or any other property they currently own – and there are no restrictions on their use! These funds can be used to generate an adequate deposit for a reduced rate on a new BTL mortgage, or to allow multiple purchases to grow the portfolio.

For examples, our client was looking to invest in a £130k BTL property and needed £39k to access the lenders prime rate at 70% LTV. We were able to raise this deposit against their residential property, with repayments of £232.45 per month. This meant that the client was able to complete the purchase and enjoy a net yield in excess of 9%.

If you’d like to discover more about how second mortgages can help your clients build tax efficient BTL portfolios, we have experts on hand that would be happy to visit you or answer questions over the phone. You can email us at introducer@loan.co.uk and we’ll introduce you to the regional sales director for your area.