It will offer loans up to £15m up to 80% gross loan to value (LTV) for specialist properties, including semi-commercial assets, large houses in multiple occupation (HMOs) and multi-unit blocks (MUBs).
The range has an option of fees and provides flexible underwriting for applicants, including foreign nationals and portfolio landlords.
Residential portfolio loans are available up to £15m, with HMO loans available up to £3m and MUB loans up to £10m. There is no maximum number of HMO bedrooms or MUB units, subject to lending criteria.
Octane Capital has also brought back its interest deferral option, which allows borrowers to defer 1% per annum of interest. This reduces the pay rate and potentially the LTV.
Its top slicing approach also enables eligible borrowers to use personal income to supplement rental income when meeting interest coverage ratio (ICR) requirements, with rent required to cover only 90% of interest at the pay rate.
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Further, borrowers undertaking light refurbishment are permitted self-funded works costing up to 10% of the property’s market value. Up to six months’ interest retention is also available for untenanted properties, giving borrowers time to complete works and secure tenants.
Jonathan Samuels, CEO of Octane Capital, said: “Our BTL product is back by popular demand. Brokers want somewhere to take the cases that require a closer look, whether that is a large HMO, a portfolio landlord or a borrower whose income needs to form part of the affordability assessment.
“The option to defer 1% a year in interest was hugely popular last time. Lowering the pay rate can help borrowers achieve a higher LTV on lower-yielding properties in London and the South East. Combined with top slicing for high-net-worth borrowers, it allows us to look at affordability beyond the rent alone.”
He added: “Since joining Aldermore, we have moved quickly to give brokers more options and make transactions easier. Bringing back specialist BTL is the next step, combining Octane’s approach to complex lending with the backing of Aldermore Bank.”
