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West Brom BS extends LTV for mortgage prisoner products

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  • 17/09/2021
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West Brom BS extends LTV for mortgage prisoner products
The West Brom Building Society has broadened the loan to value (LTV) to 85 per cent for its mortgage prisoner range to enable them to switch to a more competitive rate.

 

The mutual launched mortgage prisoner-targeted products in September, starting with a 60 per cent LTV for interest-only and the other capped at 75 per cent LTV for capital repayment loans.

Products in the range include a two-year fixed rate modified affordability remortgage with a rate of 1.84 per cent at 75 per cent LTV. It comes with a £499 fee.

There is also a two-year fixed rate modified affordability remortgage with a rate of 2.24 per cent at 80 per cent LTV, whilst at 85 per cent LTV the product has a rate of 2.79 per cent.

The products come with a £499 fee.

The mutual was among the first to introduce modified affordability rules in September last year after regulation was changed to allow lenders to help borrowers who were unable to refinance since affordability assessments were changed following the 2008 financial crisis.

West Brom it had seen a steady stream of applications from borrowers but more needed to be done to support mortgage prisoners.

Jonathan Westhoff, the West Brom’s chief executive, said: “The introduction of these new products and lower loan to value requirements marks the next step in our approach to support mortgage prisoners. We’re hoping that by adding more products to the range, more borrowers can qualify to switch and access competitive mortgage rates in line with the current market. We’ve seen some borrowers saving up to £700 on their monthly payments, so there are significant savings to be had by switching.

“Whilst we’re pleased with the borrowers we’ve helped so far, we’ve always acknowledged that as a mid-sized lender we can only do so much, and we have called on other lenders for further support. Irrespective of the response, we still feel that far too few of these borrowers have been alerted to the opportunity to reduce their monthly mortgage payments.”

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