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Buy To Let Equity Loan Range

Profit share linked to the growth in the property value

The Buy To Let Equity Loan is designed for buy to let clients who want to raise capital for a range of purposes, including portfolio expansion.

How It Works

Like all Equity Share products, there are no monthly payments.

Instead, at redemption, clients will repay the initial loan plus a profit share which is linked to any growth in the value of the mortgaged property (subject to a Minimum Repayment Amount).

You can see an example of how this works below (see Repayment section).

Product Overview

  Option One Option Two
Profit Share (1 x Lender LTV) x Growth in property value PLUS 5% p.a. fixed rate (2 x Lender LTV) x Growth in property value
Max LTV with Lender 50% LTV 25% LTV
Max Combined LTV Commonly 77% LTV (1) Commonly 77% LTV (1)
Loan Term 2 to 5 Years 3 to 5 Years
ERCs 2 Years
5%/5%
3 Years
5%/5%/5%
Arrangement Fee 2%
Age Limits Minimum: 21
Maximum: 80 (at end of term)
Min Loan Size £15,000
Subject to a minimum of 10% LTV
Min Property Value £100,000
Charge 1st or 2nd charge
Minimum Repayment Amount 2% p.a.
(simple)
5% p.a.
(simple)

Repayment

There are no monthly payments - no principal and no interest. Instead, at the point of repayment, the initial loan will be repaid plus a profit share linked to the growth in the property value as follows:

The loan is repaid on the sale of property, voluntary redemption or at the end of the term, whichever comes first.

Option 1

(1 x Lender LTV) x Growth in property value PLUS 5% p.a. fixed rate*

Property value = £500k
Loan size = £100k (20% LTV)

Property increases by £150k over 5 years

Repay initial loan size: £100k
+
Profit share (20% x £150k): £30k +
Interest element*: £28,336

Total repayment: £158,336

Option 2

(2 x Lender LTV) x Growth in property value

Property value = £500k
Loan size = £100k (20% LTV)

Property increases by £150k over 5 years

Repay initial loan size: £100k
+
Profit share (40% x £150k): £60k

Total repayment: £160,000

* Interest calculated daily, compounded monthly

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