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May 2018

Our product of the month goes to Vida Homeloans, following the lender’s recent entry into the second charge mortgage market.


How does the product work?

Vida’s second charge range mirrors the criteria that underpins its first charge range, with the added benefits of interest-only products and competitive rates for both its residential and buy-to-let second charge products.


The lender will consider customers with complex incomes, properties above commercial premises and properties such as HMOs and MUBs, whilst not stressing the first or second mortgage repayments.


Vida also allows Automated Valuation Models (AVMs) to value a buy-to-let property, making it a stand-out in the marketplace, and it has a paperless DIP and application process, with document upload available through Brightstar. This means DIPs are available in just 10 minutes.


Who is the target audience?

  • Customers who are self-employed who have been trading for a minimum of 1 year.
  • Contractors or those with a short work history
  • Customers with complex incomes
  • New and retired landlords
  • Expats – EEA only (BTL only)
  • Those with impaired and repaired credit history


A recent example was a customer who only had one year’s accounts, and just qualified as a right to reside. The customer wanted to keep repayments low by utilising interest only and with a plausible exit strategy, this was a good customer outcome.


Product features and highlights

  • BTL Expat (maximum 60% LTV)
  • 3- and 5-year fixed rates for both residential and buy-to-let
  • BTL tracker rate available
  • Residential variable rate available
  • AVMs available
  • Procuration fee set at 2% for both residential and buy-to-let



Vida’s second charge product is available for both residential and buy-to-let.

The residential range is interest-only (up to 60% LTV) with up to four applicants. Vida will consider self-employed applicants with a minimum of one year’s trading, ex-Local Authority flats and flats above commercial premises. Those borrowing in or into retirement are also eligible. Other key features include:

  • AVM/Drive-by available
  • Any legal purpose


Vida’s second charge buy-to-let product includes houses of multiple occupancy and offers up to 75% LTV. Those with impaired and improving credit history can apply, as can those who are part of a limited company/LLP, trading or SPV. This range is suitable for retired and portfolio landlords, and includes:

  • AVMs (up to 60% LTV)
  • Lending on Multi Unit blocks


Early repayment charges:

  • Residential variable rates: 2%/1% (from completion)
  • BTL tracker rates: 2%/1% (from completion)
  • Residential and BTL 3-year fixed rates: 3%/2%/1% (from completion)
  • Residential and BTL 5-year fixed rates: 3%/2%/2%/2%/1% (from completion)
  • Vida Expat range: 3%/2%/2%/2%/1% (from completion)



Up to 10% per annum of the outstanding loan amount can be made during the initial variable/fixed rate period without incurring Early Repayment Charges.


READ MORE about the client scenarios we’re able to assist you with