The deal will enable borrowers to enter the buy-to-let market without the need to prove their rental income, unlike for standard BTL products. The borrower is only required to certify that their income will be sufficient to cover both the residential and buy-to-let mortgage payments.
House Plus is available on two and three-year fixed rates with no early repayment charge overhangs and on lifetime tracker products with no early repayment charge. House Plus is also available up to 85 per cent LTV with rates starting from 5.79 per cent with no higher lending charge.
The products apply to one property only and not available to first-time buyers. The monthly cost of the existing mortgage is assumed at 7 per cent per annum and deducted from the self-certified income. Online decisions for House Plus are available on Platform’s ‘click-decision’ facility.
Paul Hunt, head of marketing at Platform, said: “After thorough research, it was clear that a BTL product using self-certified income rather than rental cover as an assessment of the borrower’s ability to repay would prove extremely popular with intermediaries.”
Kim Barrett, proprietor at KS Barrett & Associates, commented: “As long as the lender is satisfied the client is able to repay then it does not really matter if the borrower’s ability to repay is judged on self-cert income or rental income. It is a matter for the lender to judge how to best assess the borrower.”
