LendInvest has described how it changed its buy-to-let criteria as a result of broker feedback.
For multi-unit freehold block (MUFB) cases, the online property lender said that it used to require a minimum of 12 months experience managing a similar size property.
The platform changed this to requiring a minimum of 12 months experience managing a similar size property or if the MUFB experience is less than 12 months, customer must be currently managing the equivalent same number of other buy-to-lets in the background for over a year.
LendInvest also changed its buy-to-let criteria for tier 2 borrowers. For individual borrowers, the lender will now consider payment holidays on a case-by-case basis, but customers need to tell the platform upfront and allow access to open banking.
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Borrowers must have lived in the UK for three years and a permanent right to reside here, and those with criminal convictions, unless related to motoring offences, will not be accepted, although minor offences may be considered.
For tier 2 corporate credit borrowers, LendInvest previously did not accept borrowers with a default or county court judgement in the last five years, those who missed a mortgage or secured payment in the last three years and anyone with two or more unsecured arrears in the past three years.
For defaults, the lender now accepts borrowers with none in the last 12 months, two in the last 24 and for country court judgements it accepts none in the last 12 months and one in the last 24 months up to a maximum value of £5,000, which must be satisfied prior to completion.
LendInvest now also accepts borrowers with no missed mortgage or secured payments in the last 12 months or one in the last 36 months and does not count unsecured arrears.
“While we are a technology-enabled buy-to-let lender, the key to our success in the buy-to-let market has been our close working relationship with brokers,” Gene Clohessy, director of underwriting at LendInvest, said in a blog on the platform’s website.
“Whether it is with business development managers, case managers or underwriters, open dialogue about each case between these groups is how we continually learn, improve and enhance our product range to best support landlords to secure their deals and expand their portfolios.
“It’s important to keep up to date with what is going on in the marketplace, also what landlords are looking for. It helps us support clients with their entire portfolio or growth plans.
“Also, we want to hear from brokers in relation to the enquiries they are getting, so that this can help define our product set and criteria based on this feedback.”