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Yes, you can. A secured loan can be taken out on a buy-to-let property, provided there is enough equity and the lender is confident the rental income supports the additional borrowing.
It is a commonly used option among landlords who are looking to raise funds without changing their current mortgage arrangement.
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Why Some Landlords Prefer This Option
Remortgaging isn’t always the best solution, especially if you’re mid-way through a fixed deal or would face early repayment charges.
A secured loan lets you release equity from the property without touching the original mortgage. That means you keep your current rate, and avoid unnecessary costs or disruption to your wider strategy.
There are also cases where the current lender may not allow further borrowing, or where the remortgage route wouldn’t release enough.
A secured loan creates flexibility, giving landlords access to capital for things like renovations, new investments or business opportunities.
What Matters To Lenders
The amount of equity available is the first thing lenders will look at. They’ll also review how much rent the property brings in and whether it’s enough to cover both your existing mortgage and the new loan.
Some lenders may want to see evidence of rental history, while others will base decisions on projected income.
If the property is owned through a limited company, the application process may involve additional steps. It’s still entirely possible, but the criteria might be different.
Either way, lenders will want confidence that the new borrowing won’t put the investment at risk.
How It Fits Into Your Wider Plans
Landlords often use secured loans to unlock funds for property upgrades or to put towards deposits on new additions to the portfolio.
Because it doesn’t involve refinancing everything, this type of loan offers a way to act quickly when opportunities come up.
The key is making sure the new loan sits comfortably alongside your existing commitments. While the flexibility is valuable, it’s still borrowing secured against the property, so affordability remains a priority.
Finding The Right Fit
Every buy-to-let investor has their own approach, and lenders vary in how they assess secured loan applications.
That’s why it helps to speak with mortgage advisors who understand how buy-to-let lending works in practice.
At UK Moneyman, our team can help you explore what’s possible and talk through the steps in a way that makes sense for your plans.
