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Extended loans for landlords with imperfect credit record Posted On 16 April 2024

A new product introduced by a loan company can help landlords with a questionable credit rating

 

A new product line from West One Loans dubbed W3 is available up to 65% LTV and includes two options: a 6.84% five-year fix with a 4.99% charge and a 7.29% five-year fix with a 2.5% cost.  The maximum loan amount is £500,000, and the pay rate of the product is used to determine the rental amount. The lender will consider homes next to or above commercial units, as well as modest HMOs and multi-unit freehold buildings.

 

Tenants must pay in whole and on schedule for landlords to benefit. Even while they are still generally a favourable credit risk, landlords run the danger of skipping payments and getting marks on their credit record when they don't, which has been happening more frequently since the epidemic. Borrowers who can prove they have resolved their issues and are essentially a responsible credit risk can take advantage of the W3 option. Commercially speaking, the timing of this new launch makes sense given the strengthening state of the economy.

 

What do the loan conditions cover? One default, one CCJ, and one missed mortgage payment in the previous 12 months is all allowed, while any in the past three months is not acceptable. All of these conditions are up to a maximum of £5000. Additionally, no bankruptcies or individual voluntary arrangements in the past 72 months will be accepted.

 

According to the company, any credit impairment that is more than a year old, unpaid debt, or unpaid bills to communication providers and public utilities may be disregarded if a good justification is provided.

 

 

#property #landlords #rental

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