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Dudley BS increases lending to 80 per cent LTV

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  • 05/10/2020
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Dudley BS increases lending to 80 per cent LTV
Dudley Building Society has increased lending to 80 per cent loan to value (LTV) on two, three and five-year residential fixes as well as its two-year discount product.

 

The mutual returned to lending in August at a maximum of 75 per cent LTV and has phased its return to manage demand. 

It has also brought back its interest-only option for new borrowers with a discount product that has a rate of 1.05 per cent. 

 

Holiday let and self-build launch 

In the last week, Dudley Building Society has also launched mortgages aimed at holiday-let property owners and those building their own homes. 

The holiday-let product has a 1.65 per cent discount from the society’s standard variable rate (SVR) of 5.49 per cent. 

Borrowers can repay up to 20 per cent of the advance in either of the first two years of the term. Loans are available from £25,000 to £1m at 70 per cent LTV for remortgage only. 

Its self-build mortgage is discounted from the mutual’s SVR and rates depend on whether stage payments are taken in advance or not. 

If the applicant requires funding before each stage begins, the rate is 4.74 per cent and if they fund each stage before drawing down and pay in arrears, the rate is 4.49 per cent.  

For applicants aiming to build an eco-friendly property, the rate is lower with advance and arrears options at 4.34 per cent and 4.09 per cent respectively.  

The self-build product is available up to 75 per cent LTV of the end valuation, and overpayments of 10 per cent are allowed in the first two years without penalty 

Maximum terms are up to 35 years and there is an early repayment charge (ERC) of three per cent of the current balance for the first two years for overpayments exceeding 10 per cent. 

Sam Ward (pictured), commercial director at Dudley Building Society, said: “Having launched a series of new and exciting products in specialist niches such as shared ownership, right to buy, self-build and holiday-let funding, the society feels the time is right to look again at the core residential mortgage proposition.   

“To that end, we have taken the next step by improving residential LTVs and reintroducing an interest-only repayment option via a new discounted product.”   

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