Loans extended for landlords with “blemishes” on credit records

West One Loans has launched a new product range, called W3, containing a 6.84% five-year fix with a 4.99% fee and a 7.29% five-year fix with a 2.5% fee, both available up to 65% LTV. 

The maximum loan size is £500,000, while the rental calculation is based on the product’s pay rate.  

The lender will accept small HMOs/multi-unit freehold blocks, as well as properties near or above commercial units.  

West One Loans managing director of BTL Andrew Ferguson says: “Landlords rely on tenants to pay in full and on time. When they don’t, which is an increasing occurrence since the pandemic, landlords are at risk of missing payments and acquiring blemishes on their credit record, even though overall they remain a good credit risk.  

“The W3 option provides a solution to borrowers who can demonstrate that their problems are behind them and are fundamentally a sensible credit risk. We believe with the improving economic environment, the timing of this new launch makes sense commercially.”  

Loan conditions cover:  

- One default in the previous 12 months, none in the past three months – up to a maximum of £5,000;

- One CCJ in the past 12 months, none in the past three months – up to a maximum of £5,000;

- One missed mortgage payment in the previous12 months, none in the past three months – up to a maximum of £5,000;

- No bankruptcies or individual voluntary arrangements in the past 72 months.

The firm says any impaired credit older than 12 months, unsecured arrears or missed payments on public utilities and communication suppliers will be ignored, subject to satisfactory explanation.  

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