This novel product is designed to help you raise capital on your buy to let portfolio, which can be used for a number of purposes including to:

• Help you increase the size of your portfolio

• Help enhance your surplus yield

• Help reduce existing monthly payments

With this product, you can top up your buy to let borrowing to 85% Loan To Value (LTV).

For more information, please speak with your mortgage adviser.

How does it work?

Buy To Let Equity Loan

The Buy To Let Equity Loan is a second charge loan so there is no need to disturb your existing borrowing.

You can borrow up to 20% of the property value with Castle Trust – topping up your primary buy to let mortgage to 85% LTV.

There is no additional stress test and no monthly repayments. The initial loan is paid in full, along with a share in any growth in property value over the loan term.

Loans are subject to a minimum repayment amount which will range between 4% and 5% per annum simple based on the total loan to value.

Mrs Wilson had a buy to let mortgage which was at 85% LTV with monthly payments of £576, on a pay rate of 7.29%. She wanted to fi nd a way of reducing her payments but felt stuck as remortgaging was proving problematic.

After advice from her fi nancial adviser, Castle Trust provided a loan of 20% LTV and the capital raised was used to directly pay down the existing buy to let mortgage to 65% LTV.

As a result of lower LTV, Mrs Wilson was able to remortgage to a better rate and reduce her monthly repayments.

Mr Grant had a buy to let property worth £400k, with an existing £260k mortgage (65% LTV). He wanted to raise funds to help buy another investment property, but a remortgage was proving di� cult due to the rental assessment.

His fi nancial adviser recommended the Castle Trust Buy To Let Equity Loan, which was used to raise £80,000 (20% LTV) on the existing property. This was then used as a deposit for the purchase of a new buy to let investment.

Example two Raising a deposit for a BTL property

Example one Reducing monthly payments

Please note that these examples are not actual cases but are a representation of applications Castle Trust has received from borrowers. For more information please speak with your mortgage adviser.

Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

Buy To Let Equity Loan

What else should you know?

You must repay the loan by the end of the term. If you have not repaid the loan by the end of its term and either do not have su� cient savings or are not able to arrange another mortgage, then you will need to sell your property.

The cost of the loan may be signifi cantly more than a traditional mortgage depending on the growth of the property value. The amount you will repay on the loan is not known at the outset and depends on the change in the value of your property and whether the repayment is due to a sale of the property, or other type of repayment.

You must have a strategy in place for the repayment of the loan.

An Early Repayment Charge of 5% is applicable and will be detailed in your loan illustration document.

change in the value of your property and whether the repayment is due to a sale of the property, or other

Loans are subject to status, terms and conditions. Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

Castle Trust is the trading name of Castle Trust Capital plc, which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales. Company number 07454474. Registered o� ce: 10 Norwich Street, London EC4A 1BD. Most buy to let mortgages are not regulated by the Financial Conduct Authority. All details are correct as of January 2015.

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For more information please speak with your mortgage adviser.