Mansfield Building Society has launched a residential mortgage product to allow loans to be assessed against the improved valuation of a property after significant renovation.
The remortgage and purchase product is for clients investing to boost the value of a property.
Extra borrowing of over £15,000 is available, with cash-released over three stages after the initial loan completion. Final and interim Loan-to-Values will reflect the extent of the work undertaken.
The lender is offering a three-year discount rate at up to 80% LTV, on a rate of 1.60% below SVR (3.99% pay rate). The product has a £199 application fee and a £1,200 completion fee.
Product and marketing manager, Mike Taylor, said: “Despite government initiatives to create housing stock, affordability and house price inflation are not going to change dramatically in the short term.
“When lenders only allow borrowing against the current property value, it can restrict those with limited equity from accessing funds to make the improvements that they need. Rather than push people to short term credit, our individual underwriting expertise allows us to evaluate circumstances and to lend against the value of the property with the work completed.
We believe common sense lending like this can help under served niches realise their housing ambitions.”
Victoria Hartley is contributing editor at Mortgage Solutions, Specialist Lending Solutions, Your Money and Your Mortgage at London-based publishing company AE3 Media.
She has an MA in Radio from Goldsmiths after gaining a 2:1 in a Comparative American Studies BA at Warwick University. She also holds a TEFL qualification and taught overseas in Mexico and Japan from 1994 to 1997.
Her role includes editorial oversight of the news, analysis and features, event content management and strategic and editorial consultancy for the AE3 Media group. She is an experienced video, broadcast and live-event host and regularly chairs web and podcast debates and interviews.
Multiple award nominations have resulted in two wins: Santander Media Awards, trade journalist of the year and Headlinemoney Awards, mortgage journalist of the year (B2B). Here is one of the award-winning pieces: https://www.mortgagesolutions.co.uk/news/2011/07/21/exclusive-tale-bailey-fraud-witness/
Previous roles include editorships of Mortgage Solutions, consumer title What Mortgage and trade title Credit Today as well as a stint freelancing for a variety of outlets including The Guardian and Which? Money.
