April Mortgages has launched a New Build lending proposition – and it’s won support from other parts of the industry.
The product is for 90% LTV on houses and flats, up to seven times income and both employed and self-employed incomes are accepted.
April says the New Build sector continues to face challenges from tighter lender criteria, particularly at higher LTVs and on flats. Builder incentives, while common, can also reduce maximum borrowing with some lenders – creating unnecessary friction for advisers trying to place cases.
But the lender’s new product accommodates common incentive structures, and offers longer-term fixed rates with flexible repayment options. There’s also certainty with fixed rates from five to 15 years.
Rachael Hunnisett, director of mortgage distribution at April Mortgages, says: “We’ve built our New Build criteria hand-in-hand with new build advisors and housing developers. Understanding the nuance of this sector has been central to shaping April’s innovative approach, so we can help more people into homes.
“Our new build criteria is designed to help advisers say ‘yes’ more often. From higher income multiples and accepting builder incentives to nine-month offers and lending up to 90% LTV on flats, we’re making New Build lending simpler, more accessible, and adviser-friendly.”
This has won support from across the industry.
Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau, comments: “We’re delighted to see a lender so committed to understanding the new build sector. By actively engaging with brokers and developers before building their proposition, April has created a product that truly aligns with the needs of new build customers. MAB is proud of our partnership with April, whose innovative approach is helping more prospective buyers get onto the property ladder sooner.”
And Adrian MacDiarmid, head of mortgage lender relations at Barratt Redrow, adds: “Working collaboratively with April Mortgages, this new product has been designed to directly address the frustrations we hear day in day out from Londoners who feel priced out of the market. In many cases, it may even unlock homeownership sooner than they think.
“We are known for having a proactive relationship with the mortgage industry and this innovative product is no different. The launch also coincides with our dedicated Step on the Ladder campaign, to improve education around home ownership and address the concerns of the next generation of buyers. We look forward to hearing the feedback from those who have been waiting for a solution like this.”
