Buckinghamshire Building Society has responded to growing demand from brokers by launching a new mortgage product aimed at buy-to-let investors with non-standard credit backgrounds. Known as the BTL Non Standard Credit mortgage, this offering features a competitive three-year discount of 2.40% off the standard variable BTL rate. This brings the current headline rate down to 6.39%, making it an attractive option for investors looking to enter or expand their portfolio despite credit challenges.
The decision to introduce this mortgage product underscores Buckinghamshire Building Society’s commitment to catering to a diverse range of borrower needs in the competitive buy-to-let market. With significant interest from brokers, the society aims to provide accessible financing solutions that support investors who may not qualify for traditional mortgages due to past credit issues. This move also reflects broader trends in the financial industry towards offering more flexible lending options tailored to specific borrower circumstances.
Investors considering the BTL Non Standard Credit mortgage can benefit from a competitive interest rate over a three-year period, providing stability and predictability in their financial planning. The discount on the standard variable rate is designed to help mitigate initial borrowing costs, potentially enhancing the profitability of buy-to-let investments. By addressing the demand for mortgages that accommodate non-standard credit histories, Buckinghamshire Building Society aims to facilitate greater accessibility to property investment opportunities in a dynamic housing market landscape.
The newly launched BTL Non Standard Credit mortgage by Buckinghamshire Building Society responds to significant demand from brokers, offering a competitive three-year discount of 2.40% on the standard variable BTL rate. This discount results in an attractive headline rate of 6.39%, designed to support landlords who may have encountered credit challenges.
This product is tailored for landlords facing various credit issues, including missed payments on secured and unsecured loans, defaults, County Court Judgments (CCJs), mortgage arrears, payday loans, and even missed utility payments. It addresses the specific needs of borrowers with minor credit blips, ensuring they have access to viable mortgage solutions.
Key features of the BTL Non Standard Credit mortgage include a maximum borrowing limit of £500,000 and a Loan-to-Value (LTV) ratio of up to 75%. Notably, the mortgage comes with zero application fees, which can reduce upfront costs for landlords, and a competitive product fee of £1,195. These terms aim to provide financial flexibility and affordability for property investors seeking to expand their portfolios or refinance existing properties.
Both individual landlords and limited companies can benefit from this mortgage, provided they own up to three BTL mortgaged properties. This inclusive approach extends to regulated and consumer BTL properties, ensuring a broad applicability across different segments of the rental market. By catering to a diverse range of property ownership structures, Buckinghamshire Building Society aims to support the growth and stability of the rental sector.
Brokers have highlighted the importance of tailored financial solutions for landlords navigating credit challenges. The availability of the BTL Non Standard Credit mortgage underscores Buckinghamshire Building Society’s commitment to providing accessible and competitive mortgage products in response to market demand. This initiative reflects ongoing efforts to support landlords in achieving their property investment goals amidst evolving financial landscapes and regulatory environments.
The building society has introduced new adverse credit options for the BTL sector, aiming to expand broker and client choices regardless of financial circumstances. This initiative complements their manual underwriting approach, ensuring flexibility in lending criteria.
In addition to launching the BTL Non Standard Credit mortgage, Buckinghamshire Building Society recently reduced rates across various mortgage products, including residential, first-time buyer, later life, and expat holiday lets. These adjustments aim to enhance affordability and accessibility for a wider range of borrowers.
According to a spokesperson, the society recognizes the significance of filling a market gap with the BTL Non Standard Credit mortgage. Brokers have expressed a need for more options catering to landlord clients with minor credit issues, highlighting a current shortage of suitable products in the market.
“Landlords have not been immune to the cost of living pressures, and will benefit from the flexibility built into our new product. Buckinghamshire Building Society is determined to work closely with brokers, and ensure our proposition meets the needs of their clients.”
