Mortgage roundup – going green, secured loans and lowered rates

Newbury Building Society has introduced a GoGreen Reward incentive to its self-build mortgage to encourage homebuilders to make conscious sustainable choices.

The initiative follows the launch of the society’s ‘GoGreen further advance’ to its existing borrowers and is only applicable on the current self-build mortgage.

To encourage borrowers to combat climate, the society will refund half of the application fee paid at the start of the mortgage if an energy performance certificate (EPC) of A or B can be evidenced within two years of the start of the self-build project.

The self-build minimum loan amount is £500,000. Mortgage payments are accepted, and the product is postcode restricted. Once the build has been completed, the borrower is able to transfer to a standard residential mortgage.

All self-build applications will be assessed on individual merit with tailored underwriting and no credit scoring.

Roger Knight, lending manager at Newbury Building Society, comments: “We’re excited to further expand our green mortgage offering into the self-build sector.”

“The UK currently has ambitious carbon targets to reduce emissions by 80% by 2050. One of the most cost-effective ways of doing this is by lessening – or by cleaning up – the energy homeowners currently use in their properties.”

He concludes: “We believe the GoGreen Reward on our self-build mortgage, and our promise to refund half the application paid if a positive EPC rating can be proven, will encourage people to make their homes more energy-efficient.”

MCI expands reach with secured loans referral deal

MCI Mortgage Club is now offering its members a secured loan referral service via a partnership with Fluent Money.

Fluent, the UK secured loan broker, has whole of market access through its extensive lending panel as well as access to exclusive products. The partnership marks MCI’s first venture into the second charge market.

MCI members will be able to contact Fluent’s dedicated partner development team and marketing department and will have their own dedicated field account manager.

Being a technology-driven distributor, Fluent’s loan solutions include sourcing and case tracking systems for brokers and a smartphone app for clients. The app is user-friendly and enables both clients and brokers to track the case all the way through to completion.

Fluent’s technology allows for electronic ID checking, eliminating the need for paper documents and saving processing time.

Head of MCI Mortgage Club Melanie Spencer says: “As technology is at the heart of MCI, it made perfect sense for us to partner with a technology-focused secured loan provider as we take our first steps into the second charge sector.”

“I personally believe there will be a greater demand for secured loans going forward, especially if people’s circumstances have changed because of the impact of Covid. A secured loan can often be a better option than remortgaging or taking a further advance on the first mortgage.”

Jeff Davidson at Fluent Money adds: “We are thrilled to be partnering with MCI Mortgage Club, and very confident that we will be able to offer their members a choice of the best solutions, which will meet their borrowing requirements, particularly within the current climate.”

“We firmly believe that our investment in technology, innovation, compliance and our people will be key to a successful relationship.”

Exclusive shared ownership product launched by Dudley and 3mc

Mortgage packager and distributor 3mc will market an exclusive ‘heylo’ shared ownership product designed in partnership with Dudley Building Society.

‘heylo housing’ is a registered provider with the Homes and Communities Agency, working in partnership with national and regional housebuilders to deliver affordable housing across the UK.

The scheme is supported by Homes England and has granted funding to deliver 180,000 shared ownership homes.

heylo’s Home Reach scheme has delivered a high volume of shared ownership transactions between 2016 and 2020, working with over 80 housebuilders over 200 local authority areas.

Sam Ward, commercial director at Dudley Building Society, comments: “We are delighted to be working with 3mc with whom we have built a proactive relationship. They fully understand our philosophy that, as a mutual lender, part of our mission is to provide funding where people are not well served.”

“3mc shares our sense of commitment to providing that support. A shared ownership scheme like this helps more people on to the housing ladder."

Doug Hall, director of 3mc, adds: “Building societies are not just another branch of the lending industry. Apart from fulfilling a fundamental role in their communities as important local hubs, societies like Dudley are demonstrating their commitment to underserved segments of society.”

“There is and has been for some time a deep need for more initiatives to help people realise their dream of home ownership. This scheme, which we are marketing, is a demonstration of our joint commitment to meet that need.”

Rupert Mackay, partnership director for heylo, says: “We’re delighted to be a part of this partnership between Dudley Building Society and 3mc with their exclusive heylo shared ownership product. At heylo, our mission is to help those get on, stay on and move up the property ladder, this partnership will help increase awareness of the tenure and ensures home ownership opportunities are within reach.”

Vernon brings back top-slicing on buy-to-let

Vernon Building Society has reintroduced top-slicing to its buy-to-let proposition to offer more flexibility to landlords with a personal income.

The lender has also increased its maximum loan-to-value (LTV) on buy-to-let, back from 75% from 70% and launched two new holiday let products.

The new holiday let mortgages are three-year discounted rate products, starting from 1.71% with a fee of £1,499.

Brendan Crowshaw, head of mortgage and savings distribution at Vernon Building Society, says: “Vernon is very experienced in the buy-to-let market and our new product range adds depth and breadth to our proposition.

“We know that top-slicing is an important and useful tool for some landlords who want to boost their buying power or refinance their existing mortgage.”

He adds: “Our maximum LTV is now back to 75% as we continue to respond to the more positive market conditions and adapt our buy-to-let range to meet the needs of landlords.”

Vernon’s buy-to-let mortgage products are available to individuals and limited companies, non-portfolio and portfolio landlords, on residential and holiday let properties.

Landbay launches ‘lowest’ five-year fix

Buy-to-let lender Landbay has launched the ‘UK’s lowest’ five-year fixed rate buy-to-let mortgage.

The new rate is just 2.99% and is available up to 50% LTV on standard properties with loan sizes up to £1 million.

Commenting on the launch, managing director Paul Brett says: “This is the only five-year fixed rate buy-to-let mortgage for limited companies that is under 3%.”

“This should be positive news for brokers and landlords as Landbay is at the forefront of driving down rates and making buy-to-let ever-more affordable at a time when landlords most need it to be.”