Close Mortgages has become the first lender to launch instant offers on buy-to-let properties.
It will offer the facility to remortgaging customers initially as the technology is not yet available on BTL property purchases.
It is using automated valuation model specialist Hometrack to value the property and will use the assured shorthold tenancy agreement which should already be in place to prove rental income.
When Hometrack has developed the technology to value rental income as well as bricks and mortar, Close will provide instant offers on all BTL property purchases.
Close Mortgages chairman Bob Golden says: “There is no problem on remortgage BTL cases as the issue is proof of income which is already there. No one is doing this on BTL and we are the first to have it.”
Meanwhile, Edeus has hit back after claims from packagers that some customers are shying away from Edeus’s instant offers because it charges £899, and many would rather wait the extra week.
Packager group Ramp’s managing director John Rice says: “Many sub-prime customers are saying that they would rather wait a week than pay the £900.”
Edeus managing director Alan Cleary says the fee includes the normal valuation and legal fees and that the actual premium is £150. He adds: “John Rice is being mischievous as you can say that about anything when you take it to the extreme.”