Portfolio landlords unable to borrow or contemplating selling because of new Prudential Regulation Authority rules are being urged to consider equity release as an option.
Lenders now have more stringent guidelines on lending to any investor with four or more buy to let units.
Retirement Advantage, an equity release company, has created three products aimed at landlords; they allow BTL investors to release cash tax-free while leaving their entire portfolio intact.
One, Landlord Lifestyle, has a monthly interest rate of 6.26 per cent and an annual rate of 6.44 per cent, with the interest rolling up and added to the mortgage each month.
Another, Landlord Interest Select, has a monthly rate of 6.07 per cent and an annual rate of 6.24 per cent, and enables borrowers to pay off some, or all, of the interest charged each month.
Finally Landlord Voluntary Select has a monthly rate of 6.45 per cent and an annual rate of 6.64 per cent, and allows capital repayments of up to 10 per cent of the initial loan amount each year.
“As with other property owners, buy to let landlords want flexibility when it comes to financing options. Equity release is now a viable route” says a spokeswoman for the lender.