Vida Homeloans, the specialist mortgage lender for intermediaries, has launched a premier range.
The offering will consist of both residential and buy-to-let (BTL) mortgages.
Rates start at 2.79 per cent, for up to 70 per cent loan to value (LTV) for specialist residential business.
On specialist BTL business the rates start at 2.89 per cent, for up to 70 per cent LTV. Maximum LTVs are 85 per cent for residential and 80 per cent for BTL. Vida said its premier range is its most price-competitive range yet.
The products are also available to customers with slightly impaired credit histories, as long as they have not had a CCJ or default in the last three years.
The launch follows a number of criteria changes by the company, such as a maximum 90 per cent LTV for first-time buyers, a £4m on maximum loan for BTL portfolios of up to 15 properties and a 100 per cent discounted purchase price mortgage for right to buy.
The lender will consider flats above commercial premises, including restaurants and takeaways.
The company said the changes to its criteria came as a result of broker feedback.
Vida said it had designed products for borrowers who are currently not well served by high street lenders.
Additionally, the company said the new criteria is evidence of its desire to grow its specialist mortgage lending substantially in 2018.
Vida Homeloans, which launched in 2016, is a specialist mortgage lender for first and second-charge residential and BTL customers who may not fit the criteria currently demanded by high street banks.
The company said that its lending proposition has attracted 7,000 intermediaries, while it completed more than £400m in mortgage completions in its first year of trading.
The lender offers brokers a number of specialist online tools, including a 10-minute decision in principle, residential and BTL affordability calculator and a criteria search facility.
Provider view:
Louisa Sedgwick, director of sales, mortgages, for Vida Homeloans, said: “We are committed to offering flexibility and value to both residential and buy-to-let customers, and the premier range is part of that commitment.
“Recently we announced new criteria such as maximum 90 per cent LTV for first-time buyers and a £4m on maximum loan for BTL portfolios. Our new range offers attractive rates to those customers with appropriate credit records.”
Adviser view:
Carl Shave, director at Just Mortgage Brokers said: “Vida Homeloans' changes in criteria keep them well-placed within a sector of the market that is becoming much more competitive. The new range continues to keep their names in the frame for future advice from brokers, however as the credit impaired market grows it is becoming much more rate driven and products through selective lenders are now very keenly priced to attract their market share.”
Charges:
The Vida Premier residential range has a £995 product fee.
The premier BTL range product fee for loans up to £250,000 is £1,995 and on more than £250,000 it is 1.5 per cent.
Verdict:
The credit impaired market is growing and several lenders are now developing tools and ways to do business in this space and attract customers. With Vida Homeloans’ new offering it is another way for them to stay competitive and it will be welcomed by brokers.
