West One second charge – return of 85% LTV lending

A series of major enhancements has been made to West One’s second charge mortgage range including the return of 85% loan-to-value for prime borrowers.

Maximum loans sizes have also been increased across the entire range along with significant rate reductions of between 1% and 1.24% applied to the near prime Apex 2 products.

LTV increases have been applied to West One’s full range of residential second charge products. This includes its Apex 0 and Apex 1 plans which were previously capped at 75% with LTVs increased to 85% and 80% respectively. West One has also introduced improved maximum LTV bandings to its Apex 2 range, rising from 60% to 75% LTV.

For loans secured against the borrower’s main residence loan sizes have been increased across many products including:

• Apex 0 loan sizes increased from £100,000 to £150,000 up to 75% LTV
• Apex 1 loan sizes increased from £150,000 to £250,000 up to 70% LTV and at 75% LTV loan sizes have increased from £75,000 to £100,000
• Apex 2 loan sizes increased from £100,000 to £250,000 up to 50% LTV and at 65% LTV loan sizes have increased from £75,000 to £150,000.

At lower LTVs up to 65%, loan sizes of up to £500,000 remain available through the Apex 0 and Apex 1 product range.

The Apex 2 range has been further improved with a new five-year fixed rate and variable rate plans, both with options for no early repayment charges, and rates starting from 5.95%.

For second charge buy-to-let borrowers, West One has streamlined income proof requirements to ensure the correct tax banding has been applied within the affordability assessment. Employed applicants just need one payslip dated within the last 60 days and the self-employed must show the latest SA302.

The maximum loans for BTL have also been increased from £125,000 to £150,000 up to 70% LTV and from £75,000 to £100,000 up to 75% LTV.

Marie Grundy, managing director, Second Charges at West One, said: “We are really excited to introduce this latest set of enhancements which are designed to provide greater flexibility for borrowers looking to raise additional funds secured against their main residence or buy-to-let properties. The changes introduced will undoubtedly increase the range of advice options available to our broker partners which will in turn meet an even broader range of borrowing needs.

“There is a pent-up demand for higher LTVs and we are seeing more requests for larger loan sizes. As we gradually come out of lockdown, we believe these products will be popular particularly with more people looking to make home improvements; and to meet the increased demand we are seeing to fund property purchases either as an investment or to assist younger family members taking their first steps in property ownership.”