Buy-to-let and development finance options expanded to further support brokers
Two specialist lenders have introduced new products aimed at supporting landlords and developers navigating a changing property finance landscape.
ModaMortgages has expanded its buy-to-let offering to include day one remortgages for bridge exit applications across both its core and limited edition product ranges.
The lender will also consider applications for capital raising, provided there is sufficient equity in an existing property.
Loan sizes range from £25,000 to £2 million, with loan-to-value ratios of up to 80%. The latest update follows recent enhancements by ModaMortgages, including the addition of 80% LTV products and new fee options of £0 and 3% within its limited edition range.
Products are open to a broad range of landlord types, including individuals, limited companies, portfolio landlords, first-time buyers and first-time landlords.
“We’re excited to announce this latest criteria enhancement which offers brokers even more ways to support their clients,” said Darrell Walker (pictured left), group sales director at ModaMortgages. “This could be perfect for landlords who purchased a property via a bridging loan for the purpose of letting it out and have enhanced or improved it, which has increased its value and are now looking to exit onto a longer-term buy-to-let mortgage. It could also be ideal for those who need to raise capital quickly for other purposes, such as purchasing another investment property.”
Meanwhile, Catalyst has launched a new senior product targeting the ground-up development finance market. The lender is offering loans between £250,000 and £5 million, with up to 85% loan to cost (net of interest) and up to 70% loan to gross development value.
Interest rates for the new product start at 6.50% plus the Bank of England base rate for variable options, and from 10.50% per annum for fixed rates.
“If there’s one product brokers ask our BDMs for time and again, it’s development finance; so, we are excited to launch ground up and meet this demand,” said Anna Bennett (pictured right), marketing director at Catalyst.
“Our current funding appetite lies with experienced developers who have urban residential schemes from one to 15 units in England and Wales. We believe this funding is crucial in easing the housing shortage and enabling the delivery of smaller projects and first-time buyer-targeted properties.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
