The product has a two-year initial rate of 5.34%, compared to the mutual’s standard variable rate (SVR) of 5.5% and annual percentage rate of charge of 5.6%. Affordability will be assessed on whether borrowers can afford repayments with no maximum income multiples, and all applications will be underwritten manually.
The mutual said that although the product was not necessarily designed for borrowers with complex incomes, its approach would make it suitable for various kinds of borrowers.
This includes borrowers with stable, verifiable income who may not fit traditional lending criteria. Further, one-year accounts will be considered for professionals, including doctors and dentists.
The Stafford Building Society will consider earned income up to the age of 75, and mortgage terms are available up to the age of 85. The product has a £100 application fee and no arrangement fee.
An early repayment charge (ERC) of 2% applies to overpayments of more than 10% of the outstanding balance within the first two years of the product term.
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Emma Parker, national account manager at The Stafford Building Society, said: “Brokers need flexibility, not standard templates.
“As a mutual, we take a person-first view of lending, with no rigid multipliers and no tick-box assessments. We’re proud to bring this approach to the 90% LTV space.”
The product is now available through The Stafford Building Society’s intermediary platform.
Bath BS releases green self-build mortgage
Bath Building Society has launched its first green self-build mortgage product exclusively through BuildLoan.
Self-builders must commit to qualifying green features such as solar panels and rainwater harvesting to access the range, which includes three products with discounted variable rates for two years.
Bath Building Society will take a borrower’s lower utility bills into account to boost affordability, and options include a product with no fee and £1,000 cashback.
Craig Brown, chief mortgage officer at Bath Building Society, said: “We are delighted to extend our self-build range to include the new green products. The green mortgages complement our existing self-build range and align with our strategy to be a more sustainable society.
“The society is making strong progress towards reducing our own environmental impact, helped by our head office refurbishment and investment in new digital systems. Making sustainable homeownership more accessible and affordable for our members is part of this commitment and the new green self-build products are a big step towards helping this happen, with a further green initiative planned to launch later this year.”
Chris Martin, director of operations at BuildLoan, said: “As the leading specialist distributor in the self-build sector, we fully support the growing momentum behind green lending. These new products that we have designed with Bath Building Society support those values by rewarding self-builders who focus on energy efficiency, carbon reduction, and long-term cost savings with new product incentives and higher borrowing potential by reflecting lower running costs in the affordability calculation.
“Brokers will, of course, benefit from BuildLoan’s long-established support processes to support them in delivering good outcomes to their clients. This includes a professional review of build costs, cash flow analysis and guaranteed stage payments with no formal valuations during the build – all designed to ensure their clients get the money when they need it during their project.”
Earlier this year, the firm refreshed the criteria for its Rent a Room mortgage.
