Vida cuts rates, adds deals and amends adverse tiers

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  • 10/07/2024
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Vida cuts rates, adds deals and amends adverse tiers
Specialist lender Vida has reduced rates across its buy-to-let (BTL) mortgages by up to 0.35% and its product transfer deals by as much as 0.2%.

Rates now start from 6.12% for a two-year fix and 5.39% for a five-year fixed deal. 

Vida has also released limited-edition products for BTL borrowers, eligible for individual dwellings or houses of multiple occupation (HMOs) and multi-unit blocks (MUBs). 

This includes a two-year fix at 75% LTV, priced at 5.97% for standard properties and 6.07% for HMOs and MUBs. The product has a £4,995 fee and the minimum loan amount is £200,000. 

The limited-edition five-year fixes have 6% fees and a rate of 4.78% for standard properties and 4.91% for HMOs and MUBs. The minimum loan size is £50,000. 

The range is open to first-time landlords, experienced portfolio landlords, individual borrowers and limited company special purchase vehicles (SPVs). 

The interest coverage ratio (ICR) is 125% for basic-rate taxpayers and 140% for higher-rate taxpayers. 

 

Adverse credit changes 

Vida also adjusted its credit tiering to ignore any defaults and county court judgments (CCJs) less than £250. The lender said this would make it easier for borrowers with smaller credit blips to get a mortgage. This change will apply to Vida’s residential and BTL ranges. 

Helen Cawthra (pictured), head of intermediary relationships at Vida, said: “These new rate reductions will help our partners to help more of their customers to secure their specialist mortgage at a lower rate.

“The new limited editions will allow a variety of landlords to access products with a lower rate that suits their specialist requirements, with the flexibility of a two-year fix and lower monthly payment for improved stress-testing.” 

She added: “Additionally, by disregarding any defaults or CCJs under £250 as part of our credit tiering, we can help those individuals who may have had a small, historic[al] credit blip to get a mortgage and find a place to call home.

“Intermediaries can contact the V-Hub to discuss any case and take advantage of these rate reductions. With direct access to our specialist experts and underwriters, intermediaries can be confident in our efficient service levels coupled with dedicated support.” 

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