West One overhauls second charge range with new tiers and rate cuts of up to 1.66%

West One has announced a major overhaul to its second charge product range for residential borrowers and landlords with the introduction of new plans, new credit tiers, significant pricing reductions, and key criteria improvements. 

The changes include a rebranding of product tiers that align with a wider variety of credit profiles. The four new plans introduced are Platinum, Prime Plus, Prime, and Near Prime.

Within the product range, pricing reductions of up to 1.30% have been introduced, with shorter term fixed rates now starting from 6.49%. The lowest pricing is available in the Platinum tier for loans up to 65% LTV on either a two, three or five-year fixed term.

In addition, changes to credit eligibility rules mean that more borrowers will now qualify for lower-priced products. This includes those who missed payments on unsecured credit and mortgage accounts, as well as borrowers who have historic or more recent CCJs and defaults.

Options for interest-only products are now included in the standard product range up to 65% LTV for Platinum and Prime Plus borrowers. Interest-only products feature rates starting at 6.49%, with lower lending fees, reduced minimum income and loan size requirements, a maximum end-of-term age increase to 75 years, and the removal of the minimum property value.

AVMs up to 80% are now available in both the Platinum and Prime Plus product range enabling more borrowers to benefit from reduced valuation requirements.

The second charge product refresh also aims to offer more opportunities for buy-to-let landlords to access second charge mortgage finance.

This includes significant rate reductions up to 166bps with pricing starting at 6.99%. Additionally, reduced stress testing will allow more borrowers to qualify for second charge buy-to-let products. 

These cuts come as stamp duty changes, the Renter’s Rights Bill (expected to take effect late 2025), and proposed changes to Minimum Energy Efficiency Standards are likely to drive landlords to look for alternative sources of funds.

Marie Grundy (pictured), managing director of residential mortgages and second charge at West One, commented: “This is the first in a series of exciting developments on the horizon from West One as we are proactively tackling some of the biggest challenges borrowers face when trying to access mortgages and other specialist finance products.

“The refresh aims to bring more needs-based solutions to a wider range of borrowers, with a higher degree of accessibility. This includes lower incremental changes between product plans and rates that are designed to solidify West One’s position as a leading lender in the second charge market.”