But that’s what Loughborough Building Society is pursuing and it appears to be working extremely well.
Loughborough want to build relationships with smaller companies and they are looking for two way interaction. So far, broker feedback has resulted in criteria changes that have helped more of our clients get on the property ladder.
Loughborough have been particularly successful in the shared ownership market with their products and pricing. In certain areas, they have left the competition standing.
One of our clients was helped by Loughborough’s willingness to take 50 per cent of a spouse’s income into consideration for affordability, even though said spouse couldn’t be named on the mortgage due to adverse credit.
The lender knew the clients were married, as the client had signed an occupancy waiver as part of the application form completion, and it made sense to acknowledge his contribution to the household.
Thanks to Loughborough, the family home the couple needed was affordable, after other lenders had turned them away.
Not yet perfect
Loughborough’s pricing for 95% deals is second to none and makes affordable loans that were previously unaffordable. In an age when clients are shying away from buying properties, as they struggle to save a deposit while paying high rents, it is good to see a lender actively supporting these clients.
This approach also makes it more palatable for the Bank of Mum and Dad to release their savings to support their children.
None of this is to say that Loughborough is perfect. They have not integrated technology as much as other lenders.
Having to fill in paper application forms and getting them signed by the applicants – as you do with Loughborough – is rather old-fashioned.
Having to certify documents and post them to the lender is frustrating too.
On the other hand, their processing and underwriting is on point and soon makes up for the slow start to the process.
Innovation keeps property ladder active
The best result of this new relationship of ours is that it is keeping the shared ownership wheel turning.
Housing associations can continue identifying and building out new sites for the next wave of wannabe homeowners.
A solid shared ownership market helps provide a sound foundation for an active property ladder that keeps us all in business.
Many people have reasons to be grateful to the Loughborough Building Society, including everybody here at Chartwell Funding.