VIDA RELAUNCHED PRODUCT RANGE AND ENHANCES SERVICE PROPOSITION

Vida Homeloans announced an overhaul of its Residential & Buy to Let product range on Thursday 24th January - the biggest change since launching into the intermediary market in October 2016.

These changes consisted of rates being reduced on a number of its products by up to 0.35% on Residential and 0.50% on Buy to Let, along with improvements to its lending criteria and service proposition.


RESIDENTIAL PRODUCTS

  • Rates from 2.94% for 2 Year Fixed and 3.54% for 5 year fixed. Revert rates were also cut by between 0.10% and 0.20% to aid affordability.
  • Vida will now lend up to 90% LTV for home movers with loans up to £400,000.
  • Debt consolidation has increased from 70% to 75% LTV across all tiers
  • The minimum property value for Ex Local Authority Flats outside of Greater London has reduced from £125,000 to £80,000. The minimum property value for properties inside Greater London stays the same at £200,000.
  • Vida’s Helping Hand proposition will now also allow children to assist parents to purchase a property using the children’s income to support affordability, and not just parents helping children.
  • Maximum age at the end of the term is 70.

RESIDENTIAL PRODUCT HIGHLIGHTS

INTEREST ONLY

Up to 75% interest only Allows own investment vehicle or downsizing.

MINIMUM INCOME £15K

For at least 1 applicant Income from second jobs accepted - 12 month history required.

FEE SAVER RANGE

No product fee One free valuation on properties up to £500k Free standard legals on remortgages.

RIGHT TO BUY PURCHASE

Up to 100% of DPP subject to 75% of OMV. High rise considered

90% LTV

For first time buyers. Up to 90% LTV including product fee. Full gifted deposits considered

IMPAIRED CREDIT HISTORY

Small or life events allowable Debt Management Plans considered Minor unsecured arrears in the last 6 months considered

NEW BUILD

Flats & Houses to 90% LTV 6 month offer and up to 6 month extension available Now accept completion certificate instead of re-inspection.

HELPING HAND

Parent’s income combined with children’s to assist with affordability Available across the residential Plus Range including 90% LTV for FTB’s.

CONTRACTORS & SHORT WORK HISTORY

6 months contract or a rolling 3 month contract renewed at least once Only 1 year track record of employment in the same line of work required

‘ BUY TOGETHER’ MORTGAGES

Up to 4 applicants accepted with all incomes considered Main applicant minimum age 21.

SELF EMPLOYED

1 year’s verified accounts or SA302 Dividends and net profit considered Eligible for all products.


BUY TO LET PRODUCTS


  • Rates from 3.14% for 2 Year Fixed and 3.59% for 5 year fixed.
  • A new 85% LTV option available for loans up to £250,000 subject to the property being outside the M25. Unfortunately, this option is not available to first time buyers/first time landlords.
  • Expats:
    • Where a BTL applicant is resident in a non-EEA country the maximum LTV has been increased from 65% to 75% LTV (except Australia where it will be limited to 70% LTV). 
    • The restriction on Expats lending to individuals only has also been removed and will now allow lending to Special Purpose Vehicles (SPVs) when registered in England, Wales and Scotland where a director or shareholder is resident overseas.
  • The number of properties per BTL borrower increased from 15 to 20, and the total number of properties a borrower holds also increased from 50 to 100.
  • The minimum property value for Ex Local Authority Flats outside of Greater London has reduced from £125k to £80k.


BUY TO LET PRODUCT HIGHLIGHTS

EXPATS INVESTING IN UK

For existing UK property owners living or working in over 180 countries No minimum income required

HOUSES OF MULTIPLE OCCUPANCY

Up to 8 bedrooms Just one year’s landlord experience required Min 130% rental cover

BTL FEE SAVER RANGE

1 FREE valuation on properties up to £500k £200 contribution towards legal fees.

RENTAL CALCULATION

125% rental income for basic rate tax payers and limited companies. Based on higher of pay rate + 2% or 5.5% (5 year fixed on pay rate)

OLDER AND RETIRED LANDLORDS

Interest only up to 85% LTV Age up to 95 at the end of the term (Ltd company) No minimum income required.

MULTI UNIT BLOCKS

Up to 5 units Just one year’s landlord experience required Min 130% rental cover.

TRADING COMPANY OR SPV

Available on any trading limited company with just 1 year’s accounts Floating charge not required on SPVs

PORTFOLIO LANDLORDS

Up to 20 Properties/£4m with Vida Homeloans Up to 100 BTL properties in total with average LTV up to 80% 1 year’s landlord experience required.

RENTAL TOP-UP

Will allow surplus income to top up rental income for single units From 115% for basic rate tax payers From 120% for higher rate tax payers

IMPAIRED CREDIT HISTORY

Small or life events allowed Up to 2 CCJs & 2 missed mortgage payments allowed up to 70% LTV

NEW BUILD

Flats & Houses to 85% LTV 6 month offer and up to 6 month extension available Now accept completion certificate instead of re-inspection


SERVICE PROPOSITION


Since launching into the intermediary market in October 2016 we’ve been listening to what you and your clients want from a specialist mortgage lender. As a result, we have changed the way we handle your client's mortgage applications in order to provide you and your client the very best service.

We have now introduced the need for the following documents to be uploaded prior to submission of the mortgage application in order to ensure we conduct a full underwrite upon receipt. We will be unable to progress your client's case until all the required mandatory documents have been received.

 

RESIDENTIAL APPLICATIONS

  • Self Employed applicants
    • SA302/Tax Overview/Audited Accounts/Accountant's Certificate
  • Employed applicants
    • Latest P60 & 3 months payslips (for all employments where customer holds a 1st & 2nd job)
  • Retired applicants or where customers expected retirement age is less than 10 years away
    • Proof of pension
    • State pension statement
    • Private pension statement

     

    BUY TO LET APPLICATIONS

    • Details of BTL portfolio (if applicable)
    • Verification of employment/self-employment (if applicable)
    • Proof of income (if applicable)
    • Expatriates – Proof of ID and residency

       

      BOTH RESIDENTIAL & BUY TO LET APPLICATIONS

    • Permanent Right to Reside (if applicable)
    • Proof of ID/residency (if applicable)
    • 3 months bank statements (if applicable)
    • Disclosure of incentives (New build properties only)
    • Purpose of Loan (where remortgage reason is for business purposes)
    • Source of deposit:
      • Family gifts
      • Savings
      • Inheritance
      • Builders Deposit
      • Vendor Deposit

    IN ADDITION

    Our administration teams will review all documents when they are received to ensure the underwriter has everything they need to make an informed and robust decision. If needed they will call you to verify the documents.

    If all the required mandatory documents are not uploaded our admin teams will let you know what is needed to enable us to progress the application to our underwriters.

    As our underwriters will be better informed at the initial underwrite stage, they will call you directly to inform you if and why any additional documents may be required.

    DOWNLOAD OUR MORTGAGE APPLICATION CHECKLIST

     

    Should you wish to discuss a case with us please do not hesitate to contact your local Key Account Manager or call us on 03300 246 246