Vida has launched a range of enhancements across its range of sales to LET and residential products.
The professional lender has repositioned most of its buy-to-sales scope, reducing tax rates up to 0.51% to support landlords in competitive markets.
The minimum loan size for selected limited edition BTL products has been reduced from £200,000 to £150,000, expanding access to more customers.
Lenders have refined their interest coverage (ICR) standards to better reflect the borrower’s tax status: This includes a new hybrid ICR targeting applications involving basic and higher taxpayers, accounting for 135% of the tax rate, a 5% reduction from VIDA’s current approach.
For higher interest rates, taxpayers’ ICR has increased from 140% to 145%; for base rates and SPV, the ICR remains unchanged at 125%
VIDA temporarily increases the maximum allowable size of HMO from 6 bedrooms to 8 units, while the maximum size of Mubs is 6 units
These changes apply to properties held on a single freehold title, with their valuation thresholds remaining the same.
VIDA has also re-customized its residential range, with a reduction of up to 0.54% in new business offerings.
The lender has updated its residential affordability calculator, including further reducing the stress rate for two years.
“These enhancements reflect our ongoing market and support brokers with products that meet the actual needs of our customers,” said Ross Williams, VIDA’s head of product management.
