Good news for Landlords under the cosh.
Precise mortgages have revamped their Buy to Let (BtL) range with a couple of exciting changes.
On prime loans the loan to value is now up to 80% and that makes the number of lenders looking at this level up to 5 at most times which is 4 more than 2 years ago! So here is a brave prediction, within 6 months a major lender will launch Buy to Let at 85% (a niche lender already has 85% available). Rates reflect the risk, however are competitive with other lenders in this space.
Interestingly the 2 new lenders making most headlines and waves since the crunch, namely Aldermore and Precise are both in this space, profitable perhaps? Roll on 85%.
The other change is to make Buy to Let available to Landlords with minor credit issues over the last couple of years. This is perhaps a bigger change because they are pushing the change here. Most other lenders are looking for the Buy to Let borrowers to almost OCD about their credit files, now we have a lender that recognises bumps in the road. Great news for landlords who have overcome redundancy, rental arrears, business turndown or any number of common other problems over that last few years.
There are 3 near prime ranges depending on the size of default or CCJ with cut offs at £750/£1500/£2500 and the last 2 allowing 1 months mortgage arrears if more than 1 year ago and rates reflect the borrowers circumstances, however do start as low as 5.44% with fixed rather than percentage arrangement fees. This can be really important especially the further over £100k the loan gets.
So a good range with new products for new borrowers, if you want more information please get in touch on 0131 339 2281