Paradigm Mortgage Services has announced its members now have exclusive access to two buy-to-let products from Precise Mortgages which allow the borrower to have a limited amount of adverse credit history.
Paradigm members can now offer their clients two three-year fixed-rate buy-to-let mortgages, available up to 75% LTV, with different degrees of permitted historical adverse credit on each.
The first product, priced at 4.54% will allow one unsecured loan arrear in the last 12 months/two in the last 36 months. There must be no defaults or CCJs in the last 72 months and no missed mortgage/secured loan arrears in the last 36 months.
The second product, priced at 5.34%, is available to borrowers who have no defaults/arrears in the last 12 months, however they are allowed two unlimited defaults in the last 24 months and one CCJ in the last 24 months up to a maximum of £2.5k. No missed mortgage/secured loan arrears are allowed in the last 12 months however they are allowed one in the last 36 months. Any unsecured loan arrears are not counted on this product but may affect the client’s overall credit score.
On both products, applicants must not have any defaults, CCJs or secured arrears recorded in the three months before the application is made.
These exclusive products come with no minimum income requirements for experienced landlords, allow pensions to be regarded as income, and withdrawals from pensions to be used as a deposit. Both products come with a reduced arrangement fee of 1.5%.
Precise Mortgages’ general criteria on these products includes:
· Clients are allowed to have up to five buy-to-let properties with the lender and an unlimited number elsewhere.
· Will lend 70% LTV up to £1m; 75% LTV up to £500k.
· 125% rental at pay or reversion rate, whichever is higher.
· A minimum self-employed trading history of one year.
· Will lend in Scotland and fees can be added to the loan.
Bob Hunt, CEO of Paradigm Mortgage Services, said: “The buy-to-let market continues to grow and it is vitally important that lenders innovate and develop product offerings that cater for the growing interest in the sector. We are very pleased therefore to be able to offer our Paradigm member firms access to these dedicated exclusives from Precise Mortgages, for those clients with a less than perfect credit profile.
“The level of adverse credit allowed is by no means substantial but these products will allow those who do have some activity in their history to still be able to access mortgage finance in order to purchase a buy-to-let property.
“Part of our focus as a distributor is to work with our lender and provider partners in order to develop product offerings which are both unique and relevant to our members. These Paradigm-only exclusives are the result of such work and are testament to the strong relationship we have with Precise. We certainly believe there will be strong interest in these products and are looking forward to bringing new exclusives to market in the very near future.”
