The new W3 range across its specialist buy-to-let range will consider applicants with one default or county court judgment (CCJ) in the last 12 months and none in the last three months, up to £5,000.
Borrowers can also have one missed payment in the last 12 months but none in the last three months. To be eligible, applicants must have no bankruptcies or individual voluntary arrangement (IVA) in the last six years.
The lender will overlook any impaired credit which is older than 12 months, unsecured arrears or missed payments on public utilities and communication suppliers as long as a “satisfactory explanation” is given.
There are two products in the range, a five-year fix with a rate of 6.84% and a 4.99% fee, as well as a five-year fix with a 7.29% and a 2.5% fee.
Both are available up to 65% loan to value (LTV).
The maximum loan size is £500,000 and the rental calculation will be based on the product’s payrate. West One Loans will allow a range of property types including housing in multiple occupation (HMO), multi-unit block (MUB) and properties above or near commercial premises.
The lender said as the range was newly introduced, it wanted brokers to speak to its business development managers or contact its broker support desk to see if any potential cases met criteria.
Landlords ‘not immune’ from economic challenges
Andrew Ferguson (pictured), managing director of buy-to-let at West One Loans, said: “Landlords are not immune from what is happening in the economy and a growing number of them are facing financial challenges.
“Landlords rely on tenants to pay in full and on time. When they don’t, which is an increasing occurrence since the pandemic, landlords are at risk of missing payments and acquiring blemishes on their credit record, even though overall they remain a good credit risk.”
He added: “The W3 option provides a solution to borrowers who can demonstrate that their problems are behind them and they are fundamentally a sensible credit risk. We believe with the improving economic environment, the timing of this new launch makes sense commercially.
“This particular market is underserved and we are pleased to be able to support borrowers who have had credit issues with this enhancement to our product range, building on our existing W1 and W2 credit criteria, allowing us to support an even wider range of landlords.”
