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Vernon launches uni mortgage; Accord and Vida Homeloans reduce rates – round-up

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  • 14/10/2019
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Vernon launches uni mortgage; Accord and Vida Homeloans reduce rates – round-up
Vernon Building Society has released a mortgage for students to generate income whilst at university while Accord Buy to Let and Vida Homeloans have reduced rates on products.

 

Vernon Building Society has launched a 100 per cent loan to value (LTV) Buy for Uni Mortgage to get students onto the housing ladder and support them through university. 

The product will enable parents to help their children buy a home without having to directly fund a deposit, by becoming a joint borrower and providing supporting security on any mortgage amount over 80 per cent of the property value.

There will be a collateral charge on the parents’ own property or a cash deposit, which will earn interest.  

The borrower owns the property in their sole name and the parent is not on the title deeds meaning they are not liable for stamp duty. 

The hybrid buy-to-let and guarantor-style mortgage product has a rate of 4.70 per cent and the five-year discounted rate has no early repayment charges. 

Buy for Uni is available direct and through limited intermediary distribution including L&G Mortgage Club, SimplyBiz Mortgages, PMS and Sesame. 

Tom Gurrie (pictured), intermediary sales manager at Vernon, said: “Many parents want to help their children onto the ladder and ease the costs of putting them through university, and the Buy for Uni Mortgage lets them do both. 

“Instead of paying rent to a student landlord, the student becomes the landlord, receiving rental income that helps cover their mortgage repayments, while having a secure home for the duration of their degree course, or beyond. 

“This flexible, forward-looking mortgage product helps parents to give their children an invaluable leg-up on to the ladder.” 

 

Accord Buy to Let reduces rates by up to 0.44 per cent

Accord Buy to Let has reduced rates on more than 50 of its mortgage products. 

The reductions will be available across a selection of loan-to-values and cover two, three- and five-year products.  

A two-year fixed rate is now available at 1.65 per cent, down from 1.85 per cent for those with a 25 per cent deposit or equity stake and comes with a £1,495 product fee, free standard valuation and the option of £250 cash back or free standard legals. 

Other highlights, available for both house purchases and remortgages, include: 

  • A five-year fixed rate at 1.88 per cent (was 2.02 per cent) at 60 per cent LTV which comes with £250 cash back, free standard valuation and £1495 product fee 
  • A five-year fixed rate at 2.10 per cent (was 2.37 per cent) at 65 per cent LTV with £250 cash back, free standard valuation and £950 product fee 
  • A five-year fixed rate at 2.50 per cent (was 2.94 per cent) at 75 per cent with £500 cash back, free standard valuation and £195 product fee  

Simon Garner, product manager at Accord Buy To Let, said: “We’ve reviewed our range and made these changes to ensure brokers have the best selection of products to offer clients.” 

 

Vida Homeloans reduces rates on HTB purchase and remortgage products

Vida Homeloans has announced a refresh to its help to buy (HTB) products.  

These updates follow the launch of its HTB range for first-time buyers (FTBs), movers and remortgagers this summer.  

Vida has cut its HTB purchase and remortgage rates by up to 0.31 per cent, with rates now starting from 3.67 per cent. The refresh also includes a new two-year fixed rate range based on the lender’s 4.8 per cent Revert Rate Special, which has been extended to all tiers.   

Its HTB offering is available up to 80 per cent LTV for a Scottish purchase and 75 per cent in England, London and Wales.  

Supporting the refresh, Vida offers a customised new build process, which includes a fast-tracked initial offer lasting six months, extendable by a further six months, along with a dedicated underwriting team.  

The minimum income level requirement for all loans is £15,000 and up to four separate incomes can be accepted for HTB products.    

Louisa Sedgwick, director of sales, mortgages at Vida Homeloans, said: “We are pleased to be refreshing our Help to Buy proposition, offering even better rates to further support this evolving and resilient sector of the market.” 

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