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First-time Buyers

Melton Mowbray BS loosens criteria at 95% LTV

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
13/05/2013

Melton Mowbray Building Society has loosened criteria on its 95% LTV product in order to offer the product to a wider range of borrowers.

The mutual will allow access to its 95% mortgage to include first-time buyers, shared ownership and all other house purchases.

Melton Mowbray currently distributes around 70% of its mortgages through the intermediary channel.

Ian Balfour, CEO of SMS, said that most of the innovation in the mortgage market is currently coming from the mutual sector.

“We have been particularly heartened to see the reemergence of the mutual sector, which has provided brokers with so much more variety of product offerings to those offered by the bigger players,” he said.

“Their hands on approach to underwriting and the understanding of the cases they take on has, in the case of Melton Mowbray, led to this decision to open up their lending at 95% to the widest range of purchase borrowers.”

“We have always believed that the residential market would have completely stagnated by now, were it not for the arrival of new lenders and the new found confidence of the mutual sector. They have shown that it is possible to understand today’s lending risk and produce attractive products which clients need, without resorting to computer modeling and points scoring.”

A report from Castle Trust has also highlighted the need for new product innovation in the mortgage market. The lender’s research found that two-thirds of mortgage holders think that despite the high number of products in the market they lack variety.

The study also found that nearly 80% of homeowners would like greater innovation in the sector to help solve the slowdown in the housing market.

Sean Oldfield, chief executive officer, Castle Trust commented: “There is strong demand and interest from borrowers in more creative solutions to housing market issues including the need for large deposits and the potential risks of homeownership.”


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