Octane Capital relaunches specialist BTL product
Its specialist buy-to-let (BTL) product offers loans of up to £15m and a maximum gross loan-to-value (LTV) of 80%, including fees.
Octane Capital has relaunched its specialist buy-to-let (BTL) product with loans of up to £15m and a maximum gross loan-to-value (LTV) of 80%, including fees.
The product is aimed at portfolio landlords, foreign nationals and specialist properties, including semi-commercial assets, large houses in multiple occupation (HMOs) and multi-unit blocks (MUBs).
Residential portfolio loans are available up to £15m, while HMO loans are available up to £3m and MUB loans up to £10m.
There is no maximum number of HMO bedrooms or MUB units, subject to lending criteria.
The lender also brought back its interest deferral option, allowing borrowers to defer 1% of interest a year.
This reduces the pay rate and could increase the LTV available within affordability limits.
Octane’s top-slicing option allows eligible borrowers to use personal income alongside rental income to meet interest coverage ratio requirements.
Rent must cover at least 90% of the interest at the pay rate.
Borrowers carrying out light refurbishment can fund works worth up to 10% of the property’s market value.
Up to six months’ interest retention is also available on empty properties while borrowers complete work and find tenants.
Jonathan Samuels, chief executive of Octane Capital, said: “Our buy-to-let product is back by popular demand.
“Brokers want somewhere to take the cases that require a closer look, whether that is a large HMO, a portfolio landlord or a borrower whose income needs to form part of the affordability assessment.
“The option to defer 1% a year in interest was hugely popular last time.”
Samuels added: “Lowering the pay rate can help borrowers achieve a higher LTV on lower-yielding properties in London and the South East.
“Combined with top slicing for high-net-worth borrowers, it allows us to look at affordability beyond the rent alone.
“Since joining Aldermore, we have moved quickly to give brokers more options and make transactions easier.”
He said: “Bringing back Specialist Buy to Let is the next step, combining Octane’s approach to complex lending with the backing of Aldermore Bank.”
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