Castle Trust Capital has launched a range of mortgages for landlords looking to recover from having a poor credit history.
The ‘credit recovery range’ has five tiers, from lightly impaired to heavy adverse – the latter of which is for those with a history of individual voluntary arrangements or a recently discharged bankruptcy.
After the applicant has been with Castle Trust for 12 months they can request for the lender to review their credit history to offer a cheaper rate in a lower tier if possible.
Rates start from 6.99% to 75% loan-to-value for purchase and 70% LTV for remortgage from one to three years.
The products are currently being piloted through distributor Brightstar Financial and will be rolled out elsewhere in the next three months.
Matthew Wyles (pictured), group executive director at Castle Trust Capital, said: “Most buy-to-let investors with an adverse credit history are desperately short of options and we are now launching a fresh new alternative.
“By offering our unique credit review service after 12 months and by using short dated products which don’t lock customers into high rates as their credit improves, we are making sure this disadvantaged minority is treated fairly.
“It’s brand new thinking in this market, so it made sense to pilot the launch with a distribution partner which shared our vision.
“Rob Jupp and his team at Brightstar have been a tremendous help in putting this concept together and we are proud to be working with them on this important new initiative.”
Castle Trust promised that the enquiry process will only leave a ‘soft’ credit footprint that shouldn’t impact a customer’s credit score any further.
Rob Jupp, chief executive officer at Brightstar Financial, said: “We are always keen to work with lenders who spot a genuine customer need and take a pragmatic approach to developing the right solution – and the credit recovery range from Castle Trust is a fantastic example of exactly that.
“I expect that lots of brokers will have landlord clients on their books with adverse credit who write off their own chances to re-finance or purchase a new property.
“So, this is a great opportunity to revisit your client base and let them know that there are options available.”