Catalyst has launched a new ‘Latitude’ buy-to-let product, designed for landlords who fall outside mainstream lending.
Latitude has a 100% Interest Cover Ratio (ICR) plus unlimited top slicing, and every application will be manually underwritten.
The product caters for unusual and complex property types, including holiday lets and Airbnbs.
It also encompasses houses in multiple occupation (HMOs) with no bedroom limit, and multi-unit freehold blocks (MUFBs). MUFBs under 10 beds will be assessed on aggregate value, and over 10 beds will be assessed on block value.
Semi commercial property, flats above and adjacent to commercial property, and vacant property are all also accepted.
Loans will be made to 75% loan-to-value (LTV) and fixed rates are from 9.50% per annum.
In addition, there are no Early Repayment Charges (ERCs) or exit fees.
Chris Fairfax (pictured), CEO at Catalyst, said: “Latitude is designed to help potential customers who fall through the gaps of mainstream and specialist mortgage lenders.
“We believe our acceptance criteria is wider than most and will support intermediaries in providing a mortgage solution for a maximum of 2-year term without any ERCs, so they are free to move at any point without incurring a charge.
“One of the key criteria advantages is our ability to finance MUFBs on aggregate value up to 10 units, no limit on HMO bedrooms, semi-commercial/mixed-use, acceptance of adverse credit and ICR of 100% at pay rate with option to top slice.
“We consider the need for this product is significant right now and will remain in the medium term.
“Latitude will potentially solve hurdles created through a fast-moving change to interest rates and values and the knock-on effect to other lenders’ criteria narrowing.”
