You are here: Home - News -

Castle Trust launches mortgages for credit impaired landlords

by: Chris Menon
  • 16/10/2017
  • 0
Castle Trust launches mortgages for credit impaired landlords
Castle Trust Capital has launched a new range of mortgages aimed at landlords with a recent and significant adverse credit record.

The initial launch is being piloted exclusively through Brightstar Financial, with a roll-out to Castle Trust’s strategic partners planned over the course of the next three months.

The Credit Recovery range includes five tiers, from lightly impaired through to heavy adverse, including applicants with a history of IVA s and recently discharged bankruptcy.

Rates are available from 6.99%, and Castle Trust will price cases individually based on the credit profile of the customer. The enquiry process will leave a so-called ‘soft’ credit footprint which will not impact on the applicant’s credit score.

Loans are available up to 75% LTV for purchase and up to 70% LTV for remortgage, for terms of one year to three years.

The company claims credit rehabilitation is an important element driver for the new range and Castle Trust will, on request, review a customer’s credit history after 12 months and will offer a new product in a lower risk tier, if the credit position has improved.

Matthew Wyles, group executive director at Castle Trust Capital, said: “Most buy to let investors with an adverse credit history are desperately short of options and we are now launching a fresh new alternative. By offering our unique Credit Review Service after 12 months and by using short dated products which don’t lock customers into high rates as their credit improves, we are making sure this disadvantaged minority is treated fairly”.

Asked whether property investors with adverse credit history  should be encouraged to leverage up in the current market, Wyles explained: “We expect the vast bulk of our lending will be on remortgaging existing debt, much of which will be at very high rates. So what we are actually doing is accelerating their rehabilitation by reducing their cost of debt service. This isn’t about seducing customers with existing credit problems to gear up further.”

Rob Jupp, chief executive officer at Brightstar Financial, said: “We are always keen to work with lenders who spot a genuine customer need and take a pragmatic approach to developing the right solution – and the Credit Recovery range from Castle Trust is a fantastic example of exactly that.

“I expect that lots of brokers will have landlord clients on their books with adverse credit who write off their own chances to re-finance or purchase a new property.  So, this is a great opportunity to revisit your client base and let them know that there are options available.”

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.

Read previous post:
Bank of Ireland UK recruits South West corporate account manager

Bank of Ireland UK has appointed Andy Cooke as corporate account manager for the South West.

Close