Whilst the obvious market for Mortgage+ would be First Time Buyers who may need more than 100% to purchase furnishings, or to pay stamp duty or legal fees, it is expected that home movers will also find the product useful. These customers may want to buy a bigger property that needs some attention or consolidate other debts and this product will allow them to carry out the required improvements or reduce their monthly outgoings.
Features
No deposit mortgage up to 115% LTV
No application fee
Available for all house purchase customers
No borrower deposit required
Offset account with full functionality included
Variable and fixed rate options
No Higher lending Charge
Available on a capital and interest basis only
Ian Bullock – sales and marketing director of Yorkshire Building Society said “In the current interest rate environment it is becoming increasingly difficult for young people to get on the housing ladder. We are already involved in the Government’s Open Market Homebuy scheme but recognise that a lot of prospective homebuyers do not qualify for this. This new product will go a long way to helping such borrowers who are increasingly finding that money saved for a deposit is needed for stamp duty and associated costs, leaving little extra to buy all the essential things for a new home.”
Ian continued, “ Whilst developing Mortgage+ we were mindful of the fact that in making 100% + lending available to first time buyers we have to take a responsible approach both to the borrower and the Society’s risk profile. Whilst there is undoubted demand for this type of lending we feel that we have to demonstrate to customers that we are acting responsibly in ensuring that they do not over commit. We have include an offset facility to allow borrowers the option of taking a higher LTV initially for unforseen costs, so that any extra can be put in their savings account to reduce the mortgage interest charges.”
