Tony Cardiff is sales director at Alexander Hall
“I would first need to be satisfied that the purpose of the borrowing would meet the requirements of any new lender. Generally, investment in a new or failing business would be a problem; investment in a going concern would not.
Owen is right to be concerned about having missed payments with his current non-conforming lender as this can bar access to new lenders. However, as the arrears are more than 12 months old, they would not be a problem for a growing number of lenders in the non-conforming BTL market.
Assuming the money is not available from his existing lender at a reasonable rate, Preferred has a two-year fixed rate at 5.79 per cent. This near-prime product carries no extended redemption penalties and if Owen maintains his payments in full for the two-year period, it should be possible to remortgage him to a more competitive rate with a prime lender when the product term expires.”
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Paul Hunt is head of marketing at Platform
“Sadly, Owen’s situation is not uncommon and as unsecured debt levels continue to rise, many people have relatively small levels of adverse credit. Having said this, Platform has a number of options available.
Since the missed payments occurred over 12 months ago, Owen can be moved onto our conforming range of fixed rate and trackers. Platform has a 110 per cent BTL rental calculation option available up to 90 per cent loan-to-value (LTV) for remortgages and purchases. This is available on all our conforming BTL products, with a £999 arrangement fee that can be added to the loan. Alternatively, he can opt for a 125 per cent rental calculation which has a £599 fee. The rates for both options start from 5.74 per cent.
Owen also has access to free legals on his remortgage on certain products or a fast remortgage option with title insurance and conveyancing included.”
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Katie Tucker is a technical specialist at John Charcol
“Initially this appears to require another non-conforming lender. Missed mortgage payments with an existing non-conforming lender would lead me to look at GMAC-RFC, Amber and Kensington. The depends on what LTV Owen needs and the rental cover achievable. Kensington offers the most favourable terms at up to 90 per cent on a BTL for any legal purpose, including business investment, with a 125 per cent rental cover but only at pay rate. It offers a two-year fix of 6.94 per cent.
As the arrears are more than 12 months old and the rental income is known, we could try prime lenders, assuming no further defaults. Natwest would have an underwriter consider this if the credit score is strong enough. Scarborough and Saffron are also able to offer individual risk-based underwriting and prime rate products.
