01
Protect Low Fixed Rates
Keep your primary 2%–3.5% BTL fixed rate intact on the main loan balance, raising only the top-up equity at second charge terms.
Landlord Capital Release · Unregulated BTL Second Charges
Release Equity From Your BTL Portfolio Without Breaking Your Fixed Rate
Lock in capital behind your existing primary mortgage. Avoid thousands in Early Repayment Charges (ERCs) and fund your next deposit or EPC upgrades instantly.
Why use a second charge
Raise only the extra capital you need
Preserve the economics of your main BTL mortgage while placing a separate, purpose-built facility behind it.
02
Bypass High ERC Fees
Avoid paying 2%–5% Early Repayment Charges to your primary lender, which can easily cost £6,000–£15,000+ on typical BTL balances.
03
Speed to Completion
Progress faster than a full portfolio remortgage because your primary mortgage remains completely untouched.
04
Flexible Rental Stress Testing
Second charge BTL lenders often use more flexible ICR stress testing or top-slicing against personal income.
Side-by-side comparison
BTL second charge vs full remortgage
See what happens to your current rate, ERC exposure, leverage, speed and transaction costs.
| Feature | BTL Second Charge Loan | Full BTL Remortgage |
|---|---|---|
| Existing fixed rate | 100% Retained & Protected | Lost (whole loan resets to new market rate) |
| Early repayment penalty | £0 ERC Paid | Pay 2%–5% ERC on full existing balance |
| Combined max LTV | Up to 75%–85% Combined LTV | Up to 75% LTV |
| Speed to payout | 2–4 Weeks | 6–10 Weeks |
| Legal / valuation costs | Lower (top-up balance only) | Higher (full valuation & re-conveyancing) |
Indicative comparison only. Maximum LTV, timing, fees and eligibility vary by lender, security and borrower circumstances.
Interactive calculator
BTL second charge vs remortgage savings
Model the cost protected by retaining your fixed mortgage. Interest savings use an illustrative 5.5% remortgage benchmark.
Current BTL balance£300,000
£100,000£1,000,000
Existing fixed rate2.5%
1.0%6.0%
Remaining fixed term3 years
1 year5 years
Additional capital required£75,000
£10,000£200,000
Estimated Early Repayment Charge (ERC)3.0%
0%5%
Indicative savings
Protecting a £300,000 main balance
- Immediate ERC penalty avoided
- £9,000
- Annual interest saved on main balance
- £9,000
- Combined 3-year total savings
- £36,000
Additional capital modelled: £75,000. Your existing fixed rate is protected for 3 years within this comparison.
Indicative illustration only. This compares your entered fixed rate with a 5.5% remortgage benchmark on the existing balance and excludes second charge interest, arrangement fees, legal costs and valuation fees. Actual savings and terms depend on lender assessment.
Top landlord capital uses
Put dormant portfolio equity back to work
Use a targeted top-up for acquisitions, compliance, value-add projects or business cashflow.
Capital use 01
Deposit for Next Acquisition / BRR Deal
Leverage existing portfolio equity to fund the 25% deposit on new auction stock.
Capital use 02
EPC Band C Retrofits
Fund double glazing, heat pumps and insulation to meet Warm Homes Plan rules.
Capital use 03
Property Refurbishment & Conversions
Upgrade single BTLs into HMOs or MUFBs to boost gross yields.
Capital use 04
Business / Tax Capital
Clear seasonal HMRC liabilities or fund working capital without personal unsecured loans.
Knowledge base
Compare your wider capital options
Choose non-debt rental capital, compliance funding or reusable liquidity for repeat acquisitions.
Product questions
BTL Second Charge FAQs
Key points on first-lender consent, rental stress testing, SPV borrowing and early sale.
FCA Registration #660207 | NACFB Full Member