Vida Homeloans has made changes to its specialist buy-to-let mortgage range.
The lender has removed all constraints on debt consolidation, allowing capital raising remortgages for any purpose, and removed the need for a floating charge on Special Purpose Vehicles (SPVs) which are set up for property investment.
It has improved its criteria for Multi Unit Blocks (MUBs) bringing in a minimum valuation per block (rather than per unit) and allowing up to five units. Landlords are now required to have 12 months’ experience of owning a buy-to-let property for both MUBs and Houses in Multiple Occupation (HMOs), down from three years.
It has increased the maximum LTV on entire portfolios from 75% to 80% and reduced the minimum property valuation to £50,000. It continues to accept first time landlords on standard buy-to-let flats or houses.
- Vida’s buy-to-let rental cover requirements are as follows:
- Basic rate UK tax payers 125% cover with top up from 115%
- Higher rate UK tax payers 140% cover with top up from 120%
- Trading limited companies/SPV/LLP 125% cover with top up from 115%
- HMOs and MUBs from 130% cover
Louisa Sedgwick, director of sales – mortgages at Vida Homeloans, said: “Following some enthusiastic feedback from our partners, this latest refresh of our buy-to-let lending criteria is part of Vida Homeloans’ commitment to offer intermediaries innovation and flexibility in securing the best mortgage deal for their client’s needs.
“We have made a number of rate cuts recently and we’re confident that this combination of criteria and pricing will prove attractive to our brokers, networks and packager partners.”