Intermediary-only specialist mortgage lender Vida Homeloans has announced the launch of a pilot scheme in the second charge mortgage market.

The ‘test and learn’ range offers residential and buy-to-let (BTL) second charge mortgages through two master brokers – CSC Loans and Loans Warehouse – before its wider launch into the market through additional distributors.

Before advising on second charge mortgages and submitting it via CSC Loans or Loans Warehouse, intermediaries will be required to register on the Vida website during the pilot phase.

By focusing on residential and BTL customers that are underserved by mainstream UK lenders, Vida has developed a range of criteria-driven second charge mortgage solutions for the intermediary market. Rates start at 4.5%.

Residential criteria – up to four applicants accepted, with all incomes considered – include impaired and improving credit history, interest-only to 60% LTV to suit older borrowers, short work history, complex income and low credit score.

BTL criteria – properties over commercial premises will be considered – includes any trading limited companies, houses in multiple occupation (HMOs), portfolio landlords, multi-unit blocks (MUBs), new and retired landlords, expats, impaired and repaired credit history and no minimum income.

Vida will also use a fully automated, paperless DIP and application system, including document upload and 24/7 case tracking, and automated valuation models (AVMs) on BTL and residential property.

“After building this new proposition for the seconds market, it’s a great feeling to confirm that our pilot has begun,” said Simon Burnell, director of sales at Second Mortgages.

“I would like to thank the mortgage intermediaries who have assisted us in this process and we will now fully test the Vida Homeloans second charge mortgage proposition before rolling out further to wider distribution.”