By using this website, you agree to our use of cookies to enhance your experience.


Mortgage roundup – “Outstanding” products for lenders and consumers

The mortgage roundup column returns to bring you the latest news on mortgage products coming to the market, featuring Furness Building Society and Vernon Building Society, and a new hire for Direct Life.

Furness – “Outstanding” products and slashed rates

Furness Building Society has received an “Outstanding” rating from Moneyfacts after making reductions to a number of its residential fixed and discounted products.


Following its new two-year 80% fixed rate, Moneyfacts says: “The two-year fixed rate at 80% loan-to-value has received the most modest cut of 0.07% and is now priced at 1.37%.”

“This now matches the lowest rate available in this sector and has a lower minimum loan requirement than the lowest current rate giving access to a wider audience.”

The fee is described as ‘reasonable’ at £999 and has an incentive package on offer for both house purchases and remortgages. A £250 cashback is also included, making the deal ‘an excellent option overall’.

Alasdair McDonald, head of intermediaries at Furness, comments: “Our product teams are constantly adapting our product range to provide fantastic value and for our brokers and their clients whether they’re looking to buy a new home or coming to the end of their mortgage deal and looking to save on their monthly repayments.”

The lender has also reduced its fixed-rate Holiday Let products, which are available across England, Scotland, Wales and the Isle of Skye.

For clients with a case up to 65% LTV there is a two-year option at 3.39% and a five-year option at 3.59%. For clients with a higher LTV, there is a 3.69% two-year and 3.99% five-year option available up to 75% LTV.

Each of the products carry a £995 fee which can be added to the loan or paid upfront. For remortgages, Furness offers a free standard valuation and free legal fees although in Scotland this is adjusted to a £150 contribution towards legal fees.

Furness also adopts a flexible approach to lending including both gross holiday rental income as well as personal income when calculating affordability. Personal use of the property is allowed for up to 90 days a year.

McDonald adds: “As an established holiday let lender, we’re delighted to launch these new products.”

“But it’s not all about the lower rates, our approach to lending means that we are able to take the time to look at each case individually and assess it on its own merits, and as we allow up to 90 days personal use of the property each year the client will be able to enjoy their property also.”

Vernon boosts buy-to-let range with new products

Vernon Building Society has launched five new buy-to-let (BTL) mortgages to complement its existing range of landlord products.

The lender now has a wide range of options for landlords, including those who operate under a limited company structure and landlords who own their properties on a personal basis.

The new products include:

  • A five-year discounted rate at 2.49% up to 75% LTV with a £1,499 fee

  • A two-year discounted rate at 2.99% up to 75% LTV with a £999 fee

  • A three-year discounted rate at 3.29% up to 75% LTV with a £999 fee, available to both individual and limited company landlords

  • A limited company landlord five-year discounted rate at 2.49% up to 75% LTV with a £1,499 fee

  • A limited company two-year discounted rate at 2.99% up to 75% LTV with a £999 fee.

The lender has also enhanced its criteria to allow it to support more landlords. It now lends to landlords with no minimum income requirement and has extended its maximum age at the end of term to 80.

Vernon’s BTL mortgages are also now available to non-owner occupiers, first-time landlords and first-time buyers on an individual and limited company basis, as well as on let-to-buy applications.

In addition to the new products, the lender offers a range of holiday let buy-to-let mortgages.

Brendan Crowshaw, head of mortgage and savings distribution at Vernon Building Society, comments: “We’ve boosted our buy-to-let product range to meet demand. And we’ve updated our lending criteria to support a wider range of landlords, whether they’re first-time buyers or seasoned professionals with their portfolio held in a limited company structure.”

“We’ve listened carefully to brokers and added these products to meet the needs of your clients. Our practical approach to underwriting means we’ll treat each case individually and look for ways to say yes where possible.”

Direct Life appoints new chief commercial officer

Direct Life, the protection services and technology specialists, has appointed Iain Clark as chief commercial officer.

Clark will lead the commercial side of Direct Life, heading up distribution across the company.

Direct Life received investment from LSL Property Services (LSL) in January this year to deliver key enhancements to the protection advice market, improve its technological and operational capabilities and provide further growth opportunities for its intermediary partners.

Clark joins with 25 years’ experience in the protection industry, holding a wealth of senior management positions in organisations including L&G, Vitality, LV= and British Friendly. In this time, he has led some of the most successful protection businesses and sales and marketing operations and headed many industry-leading innovations.

Neil McCarthy, former chief commercial officer, will leave the business in early 2022, once the handover is complete. Neil McCarthy leaves after 13 years at Direct Life and a career spanning 38 years in the life and pensions industry.

Commenting on his new role, Clark says: "I'm really looking forward to joining Direct Life at the pivotal time in the development and delivery of the business’s strategy. This is a wonderful opportunity for me to help lead the commercial side of the business through its next stage of growth.”

Direct Life partners with a wide range of networks, directly authorised adviser firms and online intermediaries, providing users with a multi-functional protection portal, consumer quote and apply systems and pan-insurer application and back-office services that free up advisers from the risks and stress of application completion and the time-consuming frustrations of pipeline management.

Chief executive officer of Direct Life, Rob Quayle, comments: “It’s been a really exciting time for Direct Life since the investment from LSL, and Iain’s drive and experience will add a new dimension to our growth and success.”

“The importance of life cover has never been more prevalent than over the past 18 months, and we look forward to Iain’s contribution in our objective to make life cover simple for advisers to sell and easy customers to buy, whether they transact online, face to face or by phone.”


Please login to comment

MovePal MovePal MovePal
sign up