Castle Trust enters adverse BTL with Brightstar

Castle Trust Capital has entered the adverse buy-to-let market with a new product range.

The firm has launched a pilot through Brightstar Financial, but plans to roll out the loans to its wider broker partners in the next three months.

Rates start from 6.99 per cent, and Castle Trust will price cases individually based on customers’ credit profiles.

Purchase loans are available at  up to 75 per cent LTV and at up to 70 per cent LTV for remortgage, for terms of one to three years.

The credit recovery range has five tiers, from lightly impaired through to heavy adverse.

This includes applicants with a history of individual voluntary arrangements and recently discharged bankruptcy.

The enquiry process will leave a ‘soft’ footprint on applicant’s credit records.

Credit rehabilitation

Castle Trust will, on request, review a customer’s credit history after 12 months and offer a new product in a lower risk tier if credit position has improved.

Castle Trust Capital group executive director Matthew Wyles says: “Most buy-to-let investors with an adverse credit history are desperately short of options and we are now launching a fresh new alternative.

“It’s brand new thinking in this market, so it made sense to pilot the launch with a distribution partner which shared our vision.”

Brightstar Financial chief executive Rob Jupp says: “I expect that lots of brokers will have landlord clients on their books with adverse credit who write off their own chances to re-finance or purchase a new property.

“So this is a great opportunity to revisit your client base and let them know that there are options available.”