West One makes significant enhancements to its second charge residential and buy-to-let ranges

West One is making a series of further significant enhancements to its residential and buy-to-let second charge product ranges. This follows the expansion of their product range last month which saw the reintroduction of its ‘Prime Plan’ with rates starting from 3.99%.

This latest set of changes is designed to target underserved areas of the market which will benefit, amongst others, borrowers exiting payment holidays, employees who have returned from furlough, non-key workers and landlords.

At a time when service standards across the mortgage market are coming under increased pressure, West One is operating at normal service standards. This could prove critical for borrowers with applications which are subject to specific timescales such as home improvements or property purchases.

The product and criteria changes unveiled by West One include:

Buy-to-Let Second Charge

In addition to West One’s market leading, second charge BTL products, the following changes are being introduced across the range:

  • LTVs increased to 75% for second charge buy-to-lets and increased loan sizes up to a maximum of £250,000
  • Return of pre-Covid criteria, including consideration of applications from ex-pats and loans secured on licensed HMO’s. West One will now also accept up to three loans per borrower up to a maximum gross loan of £500,000.

Residential Second Charges

  • Regular overtime and commission can now be considered for non-key workers, where this is sustainable and in line with previous year’s earnings
  • Increased loan sizes for the prime product ranges, up to £500,000 and up to 65% LTV
  • The addition of a 5-year fixed rate without ERC’s to the Apex 1 range
  • Enhanced AVM criteria across all residential products.
  • Borrowers exiting payment holidays/returning from furlough
  • Increased LTV’s up to 75% and access to all plans and standard loan sizes with rates from 3.99%
  • Workers must have returned to work on full pay and pre-furlough hours providing confirmation from their employer and not be on notice of redundancy or similar
  • Borrowers exiting payment holidays will need to have made at least one full contractual mortgage payment and affordability will be assessed on the restructured payment where applicable

Marie Grundy, Sales Director West One Loans commented “I am proud that West One has been able to play a significant role in ensuring that a wider range of borrowers can continue to access second charge finance throughout these uncertain times. At a time when mortgage intermediaries are working in more challenging circumstances, with particular regard to service and product availability, it is more important than ever that specialist finance products, such as second charges, are considered as part of the standard advice process to ensure borrowers needs are being met by the most appropriate product.”

Ryan McGrath, Chief Executive of The Loans Engine commented, “We are delighted to see further positive changes from West One, particularly as they are one of the few lenders offering buy-to-let second charges. We are seeing increased demand from landlords who want to take advantage of the stamp duty concessions to expand their property portfolio, and the flexibility of multiple applications combined with increased LTV’s and loan sizes will provide even greater options for property investors.”