Vernon Building Society has announced that it will be introducing a new fixed-rate five-year mortgage product that comes with a loan-to-value (LTV) of 95%.
The lender has indicated that the interest rate on this product will be 2.99%, while the fee has been set at a very competitive £699. The LTV rate of 95% is set to be available to borrowers buying a home in Wales and most regions of England, but if the home being bought is in the South East or London, they will not be eligible for it.
The maximum repayment term that borrowers can get for this product is 35 years, but they must be no older than 85 by the end of that period to be able to get that length of term. It can applied for by anyone seeking a mortgage valued at up to £300,000 for the purchase of a home valued at no less than £125,000.
Vernon savings and mortgage distribution head Brendan Crowshaw told Mortgage Introducer that the company was happy to be making this product available to advisors on behalf of their clients. He then went on to say that:
“All your clients – including those borrowing at 95% – also benefit from Vernon’s common-sense approach to underwriting. We’ll take time to really understand the case and, where possible, find a way to say yes.”
At a time when advisors who have CeMAP training are having to work around rising prices to help their clients, anything that makes that easier will likely be welcomed.
