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Coventry Building Society plans remortgage criteria review

  • 15/02/2017
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Coventry Building Society plans to carry out a review of its remortgage criteria which defines acceptable reasons for refinancing a home loan.

The society said the review, planned for later this year, will include whether to allow a remortgage of a shared equity property, where the purpose of the additional funds is to repay an equity loan advanced through the Help to Buy scheme.

A spokesperson for Coventry said this type of transaction may be appropriate for a borrower who had seen their house price rise to a level which would give them the capacity to remortgage and clear the equity loan.

Currently, the Coventry does not participate in the Help to Buy market. It will offer a remortgage to a Help to Buy equity loan borrower only if they have already paid off the equity loan element of the mortgage.

Mortgage lenders came under fire this week, after new-build mortgage brokers criticised the lack of interest shown by some of the UK’s largest banks and building societies to offer remortgages to Help to Buy equity loan borrowers looking to keep the loan in place.

HSBC, Santander, Nationwide, NatWest and Virgin Money, do not offer remortgage products for Help to Buy equity loan borrowers. Virgin Money said it planned to review its position in this market, while Barclays confirmed it was weeks away from launching a product.

Coventry would not confirm any timescales for its review.

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