Online mortgage broker Habito is behind the newly-launched suite of mortgages, which were created in response to feedback from landlords who said they found the buy-to-let mortgage process difficult.
One of the features of the range, which includes seven-year and 10-year fixed rate deals, is that it is ‘open to all’. Therefore, first-time landlords as well buy-to-let investors who are self-employed, retired or older can also take advantage of the new deals.
Daniel Hegarty, founder and CEO of Habito, explained: “We exist to free people from the hell of getting a mortgage. For buy-to-let landlords, hell means long waits, inflexible eligibility criteria and application decision uncertainty.”
Indeed, it carried out research amongst landlords which found they wanted more clarity, fairness, speed, ease and innovation in their mortgages, but for too long had been challenged by delays, uncertainty and distinct lack of empathy.
Habito said its mortgage process would involve deeper checks at the outset but this would guarantee greater certainty and speed.
Challenges facing buy-to-let landlords
The launch comes following a three-year period in which the buy-to-let sector has suffered the consequences of being hit with heavy restrictions and charges which include soaring stamp duty, a rise in capital gains tax and a squeeze on profits.
Hegarty added: “For the past three years, we’ve invested heavily in our best-in-class brokerage to dramatically improve and evolve the process of getting a mortgage.
“Now we’re rolling up our sleeves to tackle the mortgages themselves. By applying our tech-first, people-centric principles, we’ve created a suite of mortgage products that speaks to one of the most under-served groups of borrowers: landlords.”
Features of the products include:
- A wide number of seven-year and 10-year fixed deals with a rates starting at 3.31% and 3.51% respectively
- The first 15 mortgages taken out will receive cashback equivalent to 2.5% of the value of the mortgage (up to £5,000)
- No minimum income for first-time landlords up to 75% loan-to-value
- No minimum value or maximum LTV restrictions for ex-local authority flats
- No discrimination against landlords with tenants who claim benefits
- Applicants will only need to show three months of income (two years’ proof of income is needed for self-employed customers)
