Buy-to-Let Second Charge Mortgage Completed in 24 Hours to Fund a New Property Purchase

A £13,500 second charge buy-to-let mortgage, completed start to finish in a single day, gave one landlord the deposit they needed for their next investment.

The Scenario

A broker approached Mercantile Trust with a case for a client who wanted to release equity from an existing buy-to-let property to help fund a deposit on a second investment. Rather than refinance and disrupt their current mortgage — with all the cost and hassle that comes with it — they needed a second charge buy-to-let mortgage that would sit alongside their existing arrangement and free up capital quickly.

The Challenge

The amount required was relatively small, and that's often where things get difficult. Many lenders impose minimum loan sizes or lean heavily on personal income when assessing affordability, which can rule out landlords looking to raise modest sums against a strong rental property. Speed was also a priority; the customer needed the funds released fast enough to secure their next purchase.

Our Solution

We assessed the case on the merits of the investment itself, not just the borrower's personal income. That's a core part of how we underwrite at Mercantile Trust.

We arranged a £13,500 second charge buy-to-let mortgage in the customer's personal name, using the rental income from the existing property to support affordability — with no minimum personal income requirement attached.

To keep things moving, we used an Automated Valuation Model (AVM) instead of a full physical valuation, cutting out one of the most common bottlenecks in second charge lending. The customer was offered a 5-year fixed rate, with Early Repayment Charges (ERCs), on a 300-month term with standard monthly repayments.

The Result

The application was submitted on 18 June 2026 and completed the very next day, 19 June 2026 — a full second charge buy-to-let mortgage, from submission to funds released, in 24 hours. The customer used the release to put down the deposit on their next buy-to-let purchase.

Deal Highlights

• £13,500 second charge buy-to-let mortgage
• Completed within 24 hours
• Funds used as a deposit for a further buy-to-let purchase
• Personal name application
• Rental income used for affordability
• No minimum personal income required
• AVM accepted in place of a full valuation
• No legal fees
• 5-year fixed rate with NO ERCs

Why It Worked

Standard lending criteria often overlook smaller, straightforward cases like this one. At Mercantile Trust, we take a common-sense view of each application, judging it on the strength of the property and the rental income it generates rather than boxing landlords into rigid affordability rules. That flexibility — paired with tools like AVMs to speed up valuations — is what let us turn this case around in a day.

If you're a landlord looking to raise capital against an existing buy-to-let property without disturbing your current mortgage, get in touch to talk through second charge options.