Great deals for those with impaired credit and ex-pats

We have recently partnered with a new specialist lender, who is offering three products, two fixed rate deals and a 2-year tracker deal, for those who have an impaired credit history and ex-pat investors.

Buy-to-let mortgages for those with impaired credit

If you are looking to buy or remortgage a property in England or Wales and have CCJ’s, defaults, unsecured credit or loan arrears, these products may offer a solution.

Summary of impaired credit criteria

This lender categorises credit impairment into four tiers and aligns their rates accordingly. The more favourable rates are available to those with lower levels of credit impairment.

Summary of maximum credit impairment with this lender

The following criteria is the most adverse that this lender will accept.

  • Country Court Judgements (CCJs) and defaults: You must not have had a CCJ in the last 6 months of £250 or more. 2 registered CCJs or defaults in the last 24 months that do not exceed a combined value of £1000 may be accepted
  • Unsecured credit/loan arrears (credit cards, mobile phone contracts, catalogues and person loans): You must not have had a missed payment in the last 6 months
  • Debt Management Plans: Are considered, providing they have been satisfactorily conducted
  • Bankruptcy/Individual Voluntary Arrangement (IVA), Debt Relief Order (DRO): Must have been discharged over 6 years ago
  • Debt consolidation: May be possible up to scheme limits, for debts incurred on the rental property
  • Previous property repossession: Customers repossessed within the last 10 years are not accepted.

Adverse criteria is assessed on total combined adverse from all applicants (if more than one applicant, both adverse credit totals are added together).

Please note that the above criteria are not exhaustive and is subject to lender underwriting and discretion. Speak with one of our advisors to discuss your eligibility and for more information.

Not just for individual landlords

This lender welcomes applications from ex-pats (see section below), HMOs (from 2 – 8 bedrooms), limited companies and Limited Liability Partnerships (LLP) including both trading and Special Purpose Vehicles, across all products.

Buy-to-let lending for UK ex-pats

Ex-pat buy-to-let mortgage products are typically more difficult to come by, but this lender may be able to help. A summary of qualifying criteria is below.

Summary of ex-pat qualifying criteria

  • You must be a British Citizen who has been resident and liable to pay UK income tax for at least 24 months within the last 5 years, who is now working in a member country or confederation of The Financial Action Task Force (FATF), excluding high risk countries.

For a full list visit: www.fatf-gafi.org/countries/#FATF.

  • No first time buyers
  • First time landlords accepted, but must currently own UK residential property
  • Must have 3 active UK credit records
  • Payments must be made from a UK bank account in Sterling
  • Maximum loan to value 75%
  • Maximum loan £500,000.

For a definitive understanding of whether these deals are right for you, speak to our advisors.

Fixed and tracker rate buy-to-let deals

Where rates are higher, but have a lower loan to value, the product is aimed at those with higher levels of credit impairment and the associated criteria is reflective of this, discuss your circumstances with our advisors.

The maximum loan amount is £500,000 across the range.

Two-year tracker product

2 year tracker rate products
Product typeInitial rate from*Max LTV**Product fee for loans up to £250,000Product fee for loans of/over £250,001ERC's***
2 year tracker 5.04% 80% £1,995 1.50% For 2 years
2 year tracker 4.54% 75% £1,995 1.50% For 2 years
2 year tracker 4.44% 70% £1,995 1.50% For 2 years
2 year tracker 5.54% 65% £1,995 1.50% For 2 years

Fixed rate products

2 year fixed rate products
Product typeInitial rate from*Max LTV**Product fee for loans up to £250,000Product fee for loans of/over £250,001ERC's***
2 year fixed 5.34% 80% £1,995 1.50% For 2 years
2 year fixed 4.84% 75% £1,995 1.50% For 2 years
2 year fixed 2.79% 70% £1,995 1.50% For 2 years
2 year fixed 2.79% 65% £1,995 1.50% For 2 years
5 year fixed rate
Product typeInitial rate from*Max LTV**Product fee for loans up to £250,000Product fee for loans of/over £250,001ERC's***
5 year fixed 5.79% 80% £1,995 1.50% For 5 years
5 year fixed 5.54% 75% £1,995 1.50% For 5 years
5 year fixed 5.29% 70% £1,995 1.50% For 5 years
5 year fixed 5.99% 65% £1,995 1.50% For 5 years

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

*Speak to an advisor for full eligibility criteria.

** Loan to Value

*** Early Repayment Charge

Enquire about these deals

Limited company applications

Applications are welcome from limited companies/LLPs that are registered in England and Wales.  If an existing limited company is trading under a different SIC code, 1 year’s accounts and an SA302 is required. 

SPV’s must have the following SIC Codes to qualify:

  • 68100 Buying and selling of own real estate
  • 68209 Other letting and operating of own or leased real estate
  • 68320 Management of real estate on a free or contract basis
  • 68201 Renting and operating of Housing Association real estate.

Houses in Multiple Occupation

HMOs are accepted for the above products, providing the applicant has a minimum of 3 years’ experience as a landlord and the number of bedrooms in the property is from 2 up to a maximum of 8.

An HMO licence might be required from your local council for the HMO, for more on requirements for licenced HMO’s, speak to our advisors. 

For details on HMO definitions and licensing, visit our HMO mortgage page.

Why is the rental cover ratio of these products beneficial?

Lenders use rental cover within a calculation to assess if you are likely to be able to afford your mortgage repayments should you face a financial difficulty of some kind (e.g. the property is untenanted).

Although many lenders have increased their rental cover amount to be 145% of the monthly mortgage payment, in line with changes required by the PRA, this lender is not regulated by them and has kept their starting calculation for basic tax rate payers (individuals only) at 125%.

What does this mean in real terms?  If you had a lender with a rental cover ratio of 145%, then you have to demonstrate you could cover not just the exact monthly mortgage repayment, but an additional 45% on top.

With a rental cover ratio of 125% you would only need to demonstrate that you could afford to cover an extra 25% of the monthly mortgage payment, which could make a big difference to the rental income you would need to demonstrate you receive.

Please note, the rental coverage rate from this lender is 130% for HMOs and limited companies and 140% for higher tax rate payers.

Mortgage criteria summary

  • Properties in England and Wales
  • Minimum age at application 21 years old (primary applicant, 18 years old for all other applicants if family members)
  • Maximum age at term end 85 years old (95 years old if it is a company BTL)
  • Max loan amount is £500,000
  • Maximum loan term is 35 years
  • All applicants must be resident in the UK
  • For purchase or remortgage

For full mortgage criteria and to discuss your eligibility, please call the number at the top of the page, or contact us online.

Enquire about these deals

This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.

Top