West One Loans increases second charge LTV limit and amends criteria

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  • 25/05/2021
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West One Loans increases second charge LTV limit and amends criteria
West One Loans has increased the maximum loan to value (LTV) lending limit from 80 per cent to 85 per cent for second charge mortgages in a revision of the Apex 1 range.

 

The Apex 1 offering is for borrowers whose credit score is less than perfect or for those with historical credit issues. 

Rates have also been reduced, including a two-year fix up to 85 per cent LTV. This has been cut from 5.85 per cent to 5.25 per cent and no longer has early repayment charges (ERCs). 

Five-year fixes have also been cut and now start from 5.35 per cent, previously 6.19 per cent with ERCs or 5.85 per cent, down from 6.49 per cent without ERCs. 

To align with the easing of coronavirus restrictions, West One now accepts applications from borrowers from all employment sectors as long as they are not currently on furlough. 

Annual bonuses will be also considered for employed borrowers including non-key workers. 

In addition, the minimum property value for borrowers living in ex-council houses has been reduced from £150,000 to £100,000, up to 75 per cent LTV. 

Marie Grundy (pictured), managing director, second charges at West One Loans, said: “Since the start of 2021 we have seen strong demand for our second charge mortgage products with borrowers taking advantage of record low interest rates.

“Increasingly, we are seeing greater diversity both in terms of loan purpose and the profile of borrowers benefitting from second charge finance. For example, more higher value loans are being taken out for home improvements by people with property valued above £1m.” 

“At West One we are constantly looking at ways to improve our product offering to ensure we are reaching a broad range of borrowing needs. This latest set of changes support that ethos,” she added. 

 

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