Castle Trust Capital has launched a range of mortgages aimed at buy-to-let landlords with a poor credit history.
The ‘credit recovery’ range features five tiers, from lightly impaired through to heavy adverse, including applicants with a history of IVAs and recently discharged bankruptcy.
Borrowing rates are not cheap and start from 6.99% and are available up to 75% loan-to-value (LTV) for purchase and up to 70% LTV for remortgage, for terms of one to three years.
Matthew Wyles, group executive director at Castle Trust Capital, said: “Most buy-to-let investors with an adverse credit history are desperately short of options and we are now launching a fresh new alternative.
“By offering our unique ‘credit review service’ after 12 months and by using short dated products which don’t lock customers into high rates as their credit improves, we are making sure this disadvantaged minority is treated fairly.”
The products are currently being piloted through distribution partner Brightstar Financial and will be rolled at the end of the year.
Rob Jupp, Brightstar’s chief executive officer, said: “We are always keen to work with lenders who spot a genuine customer need and take a pragmatic approach to developing the right solution – and the ‘credit recovery’ range from Castle Trust is a fantastic example of exactly that.
“I expect that lots of brokers will have landlord clients on their books with adverse credit who write off their own chances to re-finance or purchase a new property. So, this is a great opportunity to revisit your client base and let them know that there are options available.”
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