Catalyst launches BTL deal for complex borrowing needs

The lender said the product could offer “extreme flexibility” on a borrower’s affordability, accepted property type and credit profile. 

It has a 100 per cent interest coverage ratio (ICR) and unlimited top slicing. 

Complex property types such as holiday lets and Airbnbs will be considered. There is no bedroom limit for houses in multiple occupation (HMO) while multi-unit freehold blocks (MUFBs) with less than 10 beds will be assessed on aggregate value, or on block value for more than 10 beds. 

The lender will accept semi-commercial and vacant properties. Light refurbishment is allowed. 

Lending on the ‘latitude’ product is available up to 75 per cent loan to value (LTV) and fixed rates begin from 9.5 per cent per annum. There are no early repayment charges (ERCs) or exit fees. 

Every application will be manually underwritten. 

Chris Fairfax (pictured), CEO at Catalyst, said: “Latitude is designed to help potential customers who fall through the gaps of mainstream and specialist mortgage lenders. We believe our acceptance criteria is wider than most and will support intermediaries in providing a mortgage solution for a maximum of two-year term without any ERCs, so they are free to move at any point without incurring a charge.”  

He added: “One of the key criteria advantages is our ability to finance MUFBs on aggregate value up to 10 units, no limit on HMO bedrooms, semi-commercial/mixed-use, acceptance of adverse credit and ICR of 100 per cent at pay rate with option to top slice. 

“We consider the need for this product is significant right now and will remain in the medium term. Latitude will potentially solve hurdles created through a fast-moving change to interest rates and values and the knock-on effect to other lenders’ criteria narrowing.”