Loughborough’s Fresh Start mortgage has been designed for those facing relationship breakdown or significant re-location and unable to find an affordable property without the help of a family member to guarantee a proportion of the deposit.
The deposit guarantee scheme is where a family member, either deposits a sum of cash into a savings account, or allows a collateral charge to be registered on their home.
This guarantees up to 20% of the value of the property the mortgage applicant wishes to purchase.
It means guarantors don’t have to gift away their savings to help a family member to obtain a mortgage.
Only if the borrower defaults with their mortgage repayments will their cash, or property, be at risk.
Ashley Pearson, Loughborough’s business development manager, said: “As a mutual it’s important that we consider borrowers who are experiencing life changes that can mean they find it difficult to live in the home they want.
“We’ve found that family members are keen to help one another but sometimes they just don’t know how they can. This solution is becoming more and more sought after.
“So I’m very pleased to say, it’s now available to help those people and families who need it.”
Hanley Economic Building Society LTV boost
Hanley Economic Building Society has extended the LTV on new build houses and flats to 95% across selected products within its residential mortgage range, including its shared ownership offering.
The move is in response to increased demand from intermediary partners, the lender said.
Growing numbers of clients are reported to be seeking higher LTV lending options across a range of new build property types.
Hanley’s 95% LTV new build range includes a two-year 3.45% shared ownership variable discount mortgage, a five-year 2.95% discount mortgage, and a two-year 3.49% fixed rate mortgage.
David Lownds, head of marketing and business development at Hanley Economic Building Society, commented: “Many lenders have, in the past, avoided some areas of new build due to a lack of appetite and portfolio risk. Thankfully times are changing – albeit slowly – and therefore there are still only a few providers lending up to 95% LTV on both houses and flats.
“As a forward-thinking building society we are always looking for ways to evolve and innovate to meet the changing needs of all types of buyers. Greater choice, backed by a flexible and experienced manual underwriting process, will help even more homebuyers and intermediaries across the UK to realise the vast potential attached to the new build sector.”
Leek United doubles offer period
Leek United has doubled the offer period on its mortgages from three to six months.
The increase gives homebuyers the reassurance of additional time to get their purchases “over the line”.
Clare Beardmore, head of mortgage sales, said: “We listen carefully to all the feedback we get from brokers, and some told us that their clients would welcome the extra ‘breathing space’ of longer mortgage offers.
“Providing the best possible level of service for brokers is top of our priority list, which is why we have responded by increasing our offer period to six months.”