Catalyst Launches Latitude Buy To Let

Catalyst’s new “Latitude Buy To Let” is a product specifically designed for landlords. Its unique appeal lies in its accommodation of scenarios often overlooked by mainstream lenders. Here’s a breakdown of its key features:

100% Interest Cover Ratio (ICR): This ratio determines a property’s ability to generate rental income sufficient to cover mortgage interest payments. A 100% ICR means the rental income just needs to match the interest payments, making it a more accessible threshold for borrowers.
Unlimited Top Slicing: This feature allows landlords to use personal income to support their mortgage application, enhancing borrowing potential.
Manual Underwriting: Each application undergoes individual assessment, providing flexibility and a personalized approach.

Catering to Diverse Property Types

Latitude Buy To Let stands out for its inclusivity of various property types, often considered complex or unusual. This includes:

Holiday Lets and Airbnbs: Properties used for short-term rentals.
Houses in Multiple Occupation (HMOs): No bedroom limit, offering great flexibility for larger rental properties.
Multi-Unit Freehold Blocks (MUFBs): Valuation based on aggregate value for units under 10 beds and block value for those over 10 beds.
Semi-Commercial Properties: Properties with both residential and commercial elements.
Properties Above or Adjacent to Commercial Premises: Expanding the range of viable investment properties.
Vacant Properties: Accepted with certain conditions, such as retaining three-months interest.

Borrower Inclusivity

Catalyst’s approach is inclusive regarding the types of borrowers they accept:

Range of Borrowers: From professional landlords to first-time investors.
Diverse Legal Entities: Including individual landlords, limited companies, LLPs, offshore companies, SPVs, and trusts.
Expats and Foreign Nationals: Both EEA and non-EEA nationals can apply.
Flexible Income Requirements: No minimum income, catering to retired individuals and clients with adverse credit.

Loan-to-Value (LTV) and Interest Rates

LTV up to 75%: Offering a significant portion of the property value as a loan.
Fixed Interest Rates: Starting from 9.50% per annum.

Fees and Charges

No Early Repayment Charges (ERCs): This allows borrowers to repay the loan early without extra costs.
No Exit Fees: Providing further financial flexibility.

The Vision Behind Latitude Buy To Let

Chris Fairfax, CEO of Catalyst, emphasizes that Latitude Buy To Let is tailored for those who do not fit the criteria of mainstream and specialist mortgage lenders. Its broader acceptance criteria and two-year term without ERCs provide unprecedented flexibility for investors, particularly beneficial in a rapidly changing economic landscape marked by fluctuating interest rates and property values.