The move will support remortgage applications from landlords who have purchased properties using their own funds within the last six months and want to use the equity to take out finance for other projects, such as portfolio expansion.
In May last year, ModaMortgages announced it would accept day one remortgage applications for bridge exits from firms that are registered with the Financial Conduct Authority (FCA).
Roger Morris, the firm’s group distribution director, said: “We’re excited to announce this latest criteria enhancement, which gives brokers another way to help their clients. It supports the growing trend of landlords purchasing properties at auctions with cash, or those who purchased previously unmortgageable properties and have made them into a lettable state.
“This could involve cosmetic touch-ups like repainting, installing a new kitchen and bathroom, or adding new doors and windows. A little investment can go a long way to increasing the value of a property and can help landlords to exploit the increased equity growth so they can reinvest in other properties and grow their portfolios.”
