Loughborough adds second home mortgage
Loughborough Building Society has made changes to its lending criteria to launch a second home mortgage product.
A second mortgage is now available, where affordability allows, on a property used by the borrower as a second home.
It is now possible to borrow up to 80 per cent of the second home value or purchase price (whichever is the lower) providing the property is in England or Wales, for residential use and is not rented out.
Ashley Pearson (pictured), business development manager, said: “It seems that everyone works harder and time away from work becomes more valuable, so I’m pleased to offer a solution for borrowers who would like to have somewhere to go and relax at weekends and holidays.“
Saffron announces JBSP mortgage for first-time buyers
Saffron Building Society has introduced a joint borrower sole proprietor mortgage for first-time buyers.
The five-year fix product is being offered at 3.47 per cent and aims to give first-time buyers an additional option to step onto the property ladder by allowing a family member to assist with affordability.
The maximum loan to value is 95 per cent and the maximum loan is £500,000.
The family member’s income can be considered alongside that of the borrowers to help cover a shortfall required to purchase the property.
In time it is expected the proprietor’s income will increase so they can afford the loan and eventually remove the supporter.
Anita Arch, head of mortgage sales, said: “Feedback from brokers tells us that there is increasing need for this type of product where an inter-generational approach provides a practical solution to getting more first-time buyers into properties and the benefits this creates.”
Hinckley and Rugby BS expands later life lending options
Hinckley & Rugby has boosted its later life lending offer adding a five-year fix deal and cutting the interest rates on two existing later life products, including a retirement interest-only (RIO) mortgage.
The new five-year fix is priced at 3.99 per cent with fees of £199 on application and £800 on completion. There are early repayment charges stepping down from five per cent in year one to one per cent in year five and valuations are free.
The interest rate cuts are to the two-year fix, down from 3.19 per cent to 3.09 per cent, and the RIO lifetime discount mortgage which is reduced from 3.59 per cent to 3.19 per cent. The maximum loan to value is 80 per cent for the fixes and 60 per cent for the RIO.
Hinckley & Rugby’s suite of later life lending products is available to borrowers the society is lending to in or into retirement, including those aged 75 or over.
Carolyn Thornley-Yates, head of sales and marketing, said: “We are always listening to what the market is telling us and there is a desire to see longer fixes for later life.”