Vida Homeloans has done away with all constraints on debt consolidation, allowing capital raising remortgages for any purpose, and removing the need for a floating charge on Special Purpose Vehicles (SPV) that are set up for property investment.
The lender has also improved its criteria for Multi Unit Blocks (MUBs), introducing a minimum valuation per block, rather than per unit as was previously, and allowing up to five units.
Instead of demanding landlords have three years of experience in owning MUBs and Houses of Multiple Occupation, Vida Homelaons has reduced its requirement to 12 months. It has also increased its maximum LTV on entire portfolios from 75% to 80% and reduced the minimum property valuation to £50,000.
The lender has also confirmed the following buy-to-let rental cover requirements:
- Basic rate UK tax payers 125% cover with top up from 115%
- Higher rate UK tax payers 140% cover with top up from 120%
- Trading limited companies/SPV/LLP 125% cover with top up from 115%
- HMOs and MUBs from 130% cover
Louisa Sedgwick (pictured), director of sales – mortgages at Vida Homeloans, said: “We have made a number of rate cuts recently and we are confident that this combination of criteria and pricing will prove attractive to our brokers, networks and packager partners.”
Vida Homelaons recently added free legals for residential remortgages to its range of fee saver products. It also increased the maximum LTV by 5% on Vida 3, Vida 4, Vida 5 and Vida 6 products, which are available to borrowers with impaired credit history.