Vida Homeloans is a piloting a second charge mortgage offering.
It has a range of residential and buy-to-let second charge mortgages through two selected master brokers: CSC Loans and Loans Warehouse. Rates start at 4.5%.
The lender is undertaking a ‘test and learn’ phase in advance of a wider launch into the market through additional distributors. During the pilot phase, intermediaries will be required to register on the Vida website before advising on second charge mortgage business and submitting it via CSC Loans or Loans Warehouse.
Residential criteria include impaired and improving credit history (Debt Management Plans considered), short work history, interest-only to 60% LTV to serve later life borrowers, complex income and low credit score. Up to four applicants are accepted, with all incomes considered.
Buy-to-let criteria include any trading limited companies, HMOs, MUBs, portfolio landlords, new and retired landlords, expats, impaired and repaired credit history and no minimum income. Properties over commercial premises will be considered.
Vida will be using an automated, paperless DIP and application system, including document upload and 24/7 case tracking, and AVMs on buy-to-let and residential property.
Simon Burnell, director of sales – second mortgages, said: “After building this new proposition for the seconds market, it’s a great feeling to confirm that our pilot has begun. I would like to thank the mortgage intermediaries who have assisted us in this process and we will now fully test the Vida Homeloans second charge mortgage proposition before rolling out further to wider distribution.”
Mark Fry, CSC Loans’ managing director, said: “We are delighted to have been chosen to partner with Vida Homeloans to help facilitate their launch into the second charge market.
“We’re especially excited to be able to offer rates from 4.5% with an interest only residential product for loans up to £100k up to 60% LTV for the full term of the loan.”
You can watch Fry talk about the range here.
Burnell added: “It’s great to be able to launch our pilot with CSC Loans as they have assisted us throughout the research and development process; their advice has been invaluable in helping to shape our products and service.”