West One Loans has broadened its buy-to-let mortgage offerings, introducing new solutions aimed at helping those with past credit issues find solid footing in the property market.
Understanding the unpredictable nature of the economy and its impact on property owners, West One Loans has rolled out two new products designed to cater to landlords who’ve faced financial hurdles. These products—a 6.84% five-year fixed-rate mortgage with a 4.99% fee, and a 7.29% five-year fixed-rate mortgage with a 2.5% fee—are accessible up to a loan-to-value (LTV) ratio of 65%. This development represents a significant step towards inclusivity, recognizing the potential of landlords who have encountered financial difficulties yet demonstrate a strong likelihood of future stability.
Eligibility and Forgiveness
The eligibility criteria set by West One for these new offerings are notably forgiving, taking into account the financial disruptions that landlords may have experienced:
- One default within the last year (none in the past three months) up to a maximum of £5,000.
- One County Court Judgment (CCJ) in the past year (none in the past three months) up to a maximum of £5,000.
- One missed mortgage payment within the last year (none in the past three months).
- No bankruptcies or Individual Voluntary Arrangements (IVAs) in the past six years.
Additionally, West One is willing to overlook any impaired credit older than 12 months, as well as unsecured arrears or missed payments on public utilities and communication bills, provided there’s a satisfactory explanation for these issues.
Flexible Financing and Support
With a maximum loan amount set at £500,000 and rental calculations based on the product’s payrate, West One’s enhanced range is designed to accommodate a broad spectrum of property types. This includes small Houses in Multiple Occupation (HMOs)/Multi-Unit Blocks (MUBs), as well as properties situated near or above commercial premises.
During the rollout phase of these products, West One encourages brokers to engage directly with their Business Development Managers (BDMs) or the broker support desk to confirm the eligibility of potential cases.
A Vote of Confidence in Landlords
Andrew Ferguson, the managing director of buy-to-let at West One Loans, highlighted the economic challenges faced by landlords, especially in the wake of the pandemic. The introduction of the W3 option is seen as a beacon of hope for those who, despite facing temporary financial setbacks, are fundamentally sound borrowers. Ferguson’s comments underscore a commitment to supporting landlords through these enhanced lending options, catering to a segment of the market that has, until now, been largely underserved.