Enhanced self-employed criteria, three-year fixes, and new green loans
Specialist lender West One Loans has revamped its second charge offering by introducing improved terms for self-employed applicants, three-year fixed rates, and a new range of green mortgages.
New three-year fixed rate options are available for Apex 0 and Apex 1 borrowers – those with the strongest credit profiles – with rates starting from 8.19%.
West One’s new buy-to-let standard green products open up the lender’s green range to borrowers who have slightly adverse credit histories, buying properties with an energy performance certificate (EPC) rating of ‘A’ to ‘C’. The rates start from 8.59%.
The lender has also introduced a new limited-edition Apex 0 product for self-employed borrowers, where the minimum income requirement is £15,000 rather than the standard £40,000, enabling more self-employed borrowers to access lower priced products.
More information on West One’s second charge range is available online through the lender’s website.
“We believe that demand for second charge loans will remain strong over the next few years,” said Marie Grundy (pictured), managing director of residential mortgages and second charges at West One Loans.
“Up until recently, homeowners were able to take advantage of record low five-year fixed rates. Preserving these preferential rates of interest will become increasingly important, which means more borrowers could benefit from considering the option of a second charge mortgage should they wish to capital raise during the fixed rate period.”
Grundy added that with 1.8 million borrowers predicted to reach the end of their fixed rate term this year, it is widely expected that this will fuel demand for product transfers, which in turn could mean more intermediaries looking at second charge mortgage finance to address further borrowing needs for their clients.
“We want to ensure we have a range that is suited to as many borrowers as possible who want access to finance, but don’t want to disturb their original mortgage,” she said. “That is why we decided to have a refresh of our range to ensure that it is in tune with borrowers’ changing requirements.”
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