See how we can help

Get started online

Buy to let equity release

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Aug 6, 2022

Buy to let equity release

Equity release allows 55-year-old or over property owners to access capital while they pay off their mortgages. Equity release schemes are tax-free loans. Although it is more common to borrow this type of retirement money on a residence, there are still ways for landlords (BTL) to release equity from their investment properties.

Our guide to equity release for property owners who own buy-to-let properties will help you determine if you are eligible for BTL equity release and how much capital you could release. It also explains what other options you have before you choose an equity release plan.

Use our online mortgage calculator as a guide for your monthly repayments now

We are expert mortgage brokers

We have access to over 200 lenders in the UK to get you the best rates

Get your Quote

Is it possible to get an equity release mortgage for a buy-to-let home?

However, you may find that your options are minimal. Although it is unlikely that most equity release providers will refuse to release capital from a property you are buying to let, this doesn’t mean that they won’t turn you down.

Few providers offer investment property owners the same criteria as those who only work with homeowners.

It may be possible to release equity from all your properties if you are a professional landlord with a portfolio.

To be eligible for any equity release scheme, you must be over 55 years old. However, if you meet the provider’s requirements, the capital you release is available for almost any legal purpose. This includes home improvements and funding a vacation.

A mortgage broker can provide professional advice if you consider a buy-to-let property’s equity release. Releasing equity is not something you should take lightly. Consider all options and make sure that you get the best deal.

A specialist equity release broker can not only help you to understand all the options, but they will also search the entire market to locate the best product, guide you through the application process, and assist you with any paperwork.

Unless you are a specialist broker, you only have access to a third of the Buy To Let mortgages that are available. To unlock the whole market, contact us today.

Get started online


What are the available schemes for releasing quite from a buy to let property?

Rent property equivalents of lifetime mortgages are the only equity release programs for property owners who own buy-to-let properties. The providers don’t call them lifetime mortgages because they don’t meet the Financial Conduct Authority (FCA’s) definition of these products. However, they are the same thing and only differ in name.

What is the process of buy-to-let equity-release mortgages?

Your equity release provider will charge you a fee if you take out one of these products. You can return some of your capital in either a lump sum or monthly instalments.

The loan term does not require monthly payments. However, the interest can be rolled up to add to the debt after the agreement. This will only happen if the last surviving borrower dies or is placed in long-term care. However, some products allow you to make capital repayments throughout the term.

There is no risk that your beneficiaries will be liable if your property loses value or leaves the provider with an unpaid debt. This is thanks to guiding to buying-to-let mortgages.

  • Secured loans If you aren’t eligible to take equity release or remortgage, a secured mortgage might be an option. This is essentially a second mortgage that is secured against your equity. Lenders will lend you as much as you can repay, provided that you can pay the principal mortgages.
  • Additional advance: Getting a further advance for your existing buy-to-let mortgage might be another option. You will need to go through the affordability and credit checks with your lender again to ensure you are eligible. However, your relationship with them may help you qualify.
  • Equity release from your home: If you have both a buy-to-let property and your home, you should consider the pros and cons of each. You don’t need to place your primary residence as collateral for a lifetime mortgage, but you can borrow more and have more products available by releasing your enquiry.

A mortgage broker can help you decide whether to take equity release on your buy-to-let property or one of the other options. Experts in equity release and buy-to-let are available to help you make an informed decision.

Get started online


Talk to an expert about equity releases for property owners who own buy-to-let properties

It’s a good idea for anyone considering equity release on a buy-to-let property to get professional advice before making any decisions. A knowledgeable and experienced broker will help you make the right decisions, whether it’s a lifetime equivalent mortgage or an alternative to buy-to-let equity release.

Our broker-matching service is free and will help you find the right advisor. This service will consider your situation and match you with an expert in equity release and buy-to-let. We only recommend brokers we have personally vetted. This is so that we can verify their track record in helping customers like you.

We’ll help you today by setting up a no-obligation, free chat with the broker best suited to your needs so contact us now.

Get started online