Online broker Habito has launched its own buy-to-let mortgage range that will give applicants an instant decision on whether their loan is approved.
It will start by offering deals for individual landlords but plans to expand into limited company and portfolio buy-to-let soon.
The broker has secured £500m from an unnamed FCA-regulated company to fund its mortgage launch and says it is working with a number of large financial institutions to bring about its other planned product launches over the coming months.
Habito says its instant decision process has been developed using proprietary technology to carry out checks at the outset enabling a faster lending decision and greater certainty for applicants.
Products include two, three, five, seven and 10-year fixed rates ranging from 65 per cent to 80 per cent loan-to-value.
Two-year fixed rate deals start at 2.59 per cent and three-year deals at 2.69 per cent both with a 1.5 per cent fee.
Five-year deals start from 3.21 per cent, seven-year deals from 3.31 per cent and 10-year deals from 3.51 per cent all with the same fee.
Fee-free alternatives are available for all LTVs and fixed rate periods at a higher rate.
The first 15 customers to apply for a Habito mortgage qualify for a special cashback offer worth 2.5 per cent of their loan amount up to a maximum of £5,000.
For standard borrowers three months’ proof of income is required, but the range is also open to self-employed borrowers with two years’ proof of income.
First-time landlords can also apply and there is no minimum income requirement up to 75 per cent loan-to-value.
Habito has no additional LTV restrictions on ex-local authority flats and insists it will not discriminate against landlords whose tenants receive benefits.
Chief executive and founder Daniel Hegarty says: “Habito exists to connect customers with the best possible mortgage products.
“For the past three years, we’ve invested heavily in our best-in-class brokerage to dramatically improve and evolve the process of getting a mortgage.
“Now we’re rolling up our sleeves to tackle the mortgages themselves.
“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.”