Lender now accepts the sale of mortgage property as an approved method of repayment
Nottingham Building Society has announced significant changes to its mortgage offerings, including the introduction of the sale of mortgage property (SOMP) as an approved method of repayment for interest-only mortgages.
The mutual said the latest mortgage criteria change opened up new opportunities for brokers and provided borrowers with increased flexibility and access to a wider range of options. This approach, The Nottingham added, allowed borrowers to sell their current property and use the proceeds to pay off the mortgage, while also providing the opportunity to purchase a smaller property.
The lender, which has a maximum loan-to-value (LTV) of up to 80% for interest-only mortgages, offers the flexibility of having part repayment mortgages and part interest-only, in addition to solely interest-only.
Under the new offering, for borrowers who choose SOMP as their primary repayment method, The Nottingham sets the maximum LTV at up to 60%, with borrowers having at least £200,000 equity in their property or £300,000 in London and the South East.
Borrowers can also use more than one repayment method, for optimal financial planning. This allows borrowers to still go to 80% LTV on interest-only, using one of The Nottingham’s other stated repayment vehicles or SOMP up to 60% plus one of their stated repayment options.
Last month, The Nottingham also made changes to its mortgage criteria to streamline the process for both brokers and customers, revising its maximum loan sizes, eliminating the need for bank statements in some cases, and easing the required submission of three years’ worth of accounts for self-employed mortgage applicants.
The changes follow the building society’s decision to sign up to the government’s Mortgage Charter, reaffirming its commitment to support borrowers.
“The Nottingham remains committed to strengthening its relationships with brokers and empowering borrowers through innovative solutions and continues to evolve its services to meet the dynamic needs of customers effectively,” commented Alison Pallett (pictured), sales director at Nottingham Building Society.
“We are always ready to adapt our offering to the changing demands of the market and economic climate, and this latest update will provide customers with a wider range of solutions that work for them.”
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