Vida Homeloans has modified its buy-to-let proposition following the introduction of new underwriting standards by the Prudential Regulatory Authority last month.
The specialist mortgage lender for intermediaries has updated its criteria for the buy-to-let market.
For new build or off-plan buy-to-let properties the initial four month offer period from Vida Homeloans can now be extended for a further four months on the same product and family members can reside in student let buy-to-let properties.
As far as by-to-let rental cover requirements are concerned, Vida Homeloans’ rental cover is 125% for basic rate UK tax payers and limited companies (top up using surplus income from 115%) and 140% for higher rate UK tax payers (top up using surplus income from 120%).
Other affordability criteria include HMOs from 130% rental cover and trading limited companies/SPV/LLP at 125% cover with top up from 115%.
The announcement follows this month’s housing white paper which set out legislation to improve conditions in the private rented sector for both landlords and tenants.
In addition, Vida Homeloans has announced a fresh wave of updates to its buy-to-let range, including a £500 reduction on its buy-to-let product fees to £1,495 on all loans below £250,000, and a 0.25% reduction to 1.25% on larger loans.
Louisa Sedgwick, director of sales – Mortgages, Vida Homeloans, said: “Vida Homeloans is committed to offering the best value to both residential and buy-to-let customers, and the latest refresh of our buy-to-let rates and fees is part of that commitment.
“Our aim at Vida is to offer landlords innovation and flexibility in securing the best mortgage deal for their client’s needs, while also ensuring the all-important rate works for their portfolio.
“We have made a number of criteria improvements and we’re confident that brokers will see the value in what we’re aiming to achieve with this set of changes and will respond positively.”