The lender will allow up to five deals at 75 per cent as part of a portfolio and has said it will apply its normal criteria on credit decisions.
Rob Field, head of sales and marketing ay Unity Homeloans, believed the rest of the market would be watching closely to see how the range fared.
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“Buy-to-let is still a strong proposition for everyone so if you have got five or six properties with plenty of excess on the rental cover, you can use this when there might be shortcomings.
“Someone has to do this first so if it proves to be a good idea then I’m sure other players in the mortgage market will follow.”
The move has brought a mixed reaction from the lending industry, with Jonathan Burridge, managing director of Quantum Mortgage Brokers, welcoming the move.
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“This is an interesting product and the requirement of an existing portfolio will ensure that it is not sold inappropriately to those that do not fully understand the possible exposure they face.”
However, one industry figure, who wished to remain anonymous, commented: “As a lender, it will need to underwrite that 25 per cent somehow. Also, Unity hasn’t been talking about it a lot – does it consider it to be a bit too ‘racy’ to be shouting about?”
