West One enhances second charge residential and buy-to-let criteria

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.

Across its residential second charge range, West One has enhanced its AVM criteria, increased its loan sizes on prime products, and increased LTVs up to 75%.

It will also consider regular overtime and commission for non-key workers, where this is sustainable and in line with previous year’s earnings.

For workers returning from furlough, they must be on full pay and pre-furlough hours 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.

LTVs have also increased to 75% for second charge buy-to-lets and loan sizes have increased to a maximum of £250,000.

West One has also returned to its pre-Covid criteria, including consideration of applications from expats and loans secured on licensed HMOs. West One will now also accept up to three loans per borrower up to a maximum gross loan of £500,000.

Marie Grundy, sales director at 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.”