Getting the funds together to get on the first rung of the property ladder is still a challenge for many. But with lenders increasingly offering ever-more-flexible mortgage products there's now more scope than ever to find a mortgage deal that suits your particular needs.
Related: Best mortgage rates and how to find them
And one such product is the 2 Year Discount Variable Mortgage from The Loughborough Building Society. Applicants who have a minimum income of £50,000 for sole applicants and £75,000 for joint – with no restrictions on profession – will be able to borrow up to 5.5x their income.
Generally banks and buildings societies will offer lending for a maximum of between 4 or 4.5 times applicants' salaries, so the above could open up borrowing opportunities for a wider spectrum of homeowners.
The maximum loan-to-value (LTV) is 85 per cent (subject to the Society's lending policy), which means buyers will still need to come up with a 15 per cent deposit. The minimum advance is £150,000, while the maximum is £750,000.
Suitable borrowers will be able to take advantage of a 2.45 per cent discounted rate for 2 years – which won't fall below 1.50 per cent for a period of 2 years from completion – with a £999 completion fee. The minimum term for the product is 2 years, while the maximum is 35 years.
The product is available for the purchase or re-mortgage residential property in mainland England and Wales for the applicants' own use.
Ashley Pearson, Business Development Manager at the Loughborough Building Society said: 'It’s great that we’re able to help even more borrowers afford their dream home, it’s important to take a common-sense approach to lending which I believe we do every day.'
A representative example is featured below:
A mortgage of £240,865, payable over 17 years and 7 months (211 months) initially on a discounted rate for 2 years (24 months) of 2.45 per cent and then on our current standard variable rate of 5.34 per cent for the remaining 15 years and 7 months (187 months) would require 24 monthly payments of £1,406.17 then 187 monthly payments of £1,722.94.
The total amount payable would be £358,035.76 made up of the loan amount plus interest (£115,626.76) with a £999 completion fee, £290 valuation fee, £30 CHAPS fee, legal fees of £105 and a mortgage exit administration fee of £120. The overall cost for comparison is 4.9 per cent representative APRC (Annual Percentage Rate of Charge).
Related: Half of homebuyers would take this BIG step to slash the cost of their monthly mortgage payments
Does this Loughborough Building Society mortgage deal appeal to you?
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