Digital broker Habito is to offer its own buy-to-let mortgages for the first time and is planning on targeting landlords with a promise to halve the time it takes to get a mortgage offer.
The online broker said its move into the mortgage lending industry alongside its existing brokerage services would bring ‘much-needed innovation’ to the buy-to-let market, with most of its buy-to-let customers getting a mortgage offer within just ten days; significantly quicker than the 21-day industry standard.
The broker, now mortgage lender, has launched a range of buy-to-let mortgages on its new mortgage platform from two to 10-year fixes, at 65%, 70%, 75% and 80% loan to value. Rates range from 4.47% with 80% LTV on a 10-year fix, down to 2.59% on 65% LTV on a two-year fix. Ten-year fixed rate deals start at 3.51% and seven-year deals from 3.31%.
‘Habito instant decisions’
According to its own research with landlords, the industry is calling for “more clarity, speed, fairness, ease and innovation” after the raft of changes over the past few years. Daniel Hegarty, founder and chief executive of Habito, said: “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”.
Habito’s decision-making process includes comprehensive affordability and credit checks, eligibility checks, automated property valuations and identity checks. According to Hegarty, the company will provide the ‘fastest mortgage process in the country’, using its own technology and replacing ‘decisions in principle’ with its own ‘Habito instant decisions’, meaning customers will get a ‘yes’ or a ‘no’ on the spot.
Open to all
It’s positive news for landlords who will also benefit from no minimum or maximum LTV restrictions on ex-local authority flats and no DSS restrictions. Plus the mortgage range is open to everyone, including retired landlords, self-employed, and first-time buyers. Prospective first-time landlords also don’t have to worry about their minimum income on lending up to 75% LTV.
According to Hegarty: “Habito exists to connect customers with the best possible mortgage products.
“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.”
Later this year, the digital broker plans to launch a range of mortgages for company buy-to-lets and portfolio landlords and residential borrowers.