"Latitude is designed to help potential customers who fall through the gaps of mainstream and specialist mortgage lenders."
Catalyst has launched a new buy-to-let product designed for landlords who fall outside mainstream lending, offering greater flexibility on borrower affordability, accepted property, borrower type/credit profile and complex enquiries.
Latitude has a 100% Interest Cover Ratio (ICR) plus unlimited top slicing, and every application is manually underwritten.
The product caters for unusual and complex property types, including holiday lets and Airbnbs. HMOs (no limit on bedrooms) and MUFBs under 10 beds are assessed on aggregate value, over 10 beds on block value. Semi-commercial property is accepted, as are flats above and adjacent to commercial property. Vacant property is accepted and, in this instance, three months interest will be retained. Light refurbishment is allowed.
Catalyst also welcomes a wide range of borrower types including professional, portfolio and first-time landlords. It will lend to individuals, limited companies, LLPs, offshore limited companies, SPVs and Trusts. Expats and foreign nationals from EEA/non-EEA are also accepted. There is no minimum income requirement and borrowers can be retired. Clients with adverse credit are also catered for.
Loans are available up to 75% LTV and fixed rates are from 9.50% pa with no ERCs or exit fees.
Chris Fairfax, 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 two-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.”