There are a lot of negative headlines out there at the moment. So rather than add to that, we are pleased to be able to bring something positive your way this week.
This will be particularly welcome if you are a self-employed worker seeking a mortgage at present.
The news is that a mortgage lender who has a strong base of self-employed borrowers, is making changes to their mortgage offering – and it’s a positive change.
Which lender are we talking about?
The lender in question is Beverley Building Society. These guys have a good relationship with the self-employed, and self-employed business owners make up around half of the building society’s customer base.
The Beverley has now taken the bold move of increasing its maximum loan to value to 80% for self-employed borrowers.
This means mortgage deals will be available where the applicant needs a deposit covering just 20% of the overall value of the property.
For example, if you are looking at a property worth £300,000, the deposit would need to be £60k, and the Beverley would cover the rest as part of your mortgage deal.
What changes have been made?
The new maximum 80% LTV is a change up from the highest amount Beverley Building Society was previously willing to offer.
This was formerly at 75%, meaning the deposit on the same hypothetical £300,000 house would be £75,000. That additional £15,000 is no small sum, so the larger LTV gives self-employed workers a better chance of reaching their deposit target sooner rather than later.
Are there any conditions to be aware of?
The 80% LTV mortgage will only be available to self-employed borrowers who are able to show one year’s accounts. This should be a something any diligent self-employed worker is able to produce with relative ease.
Is anything else being launched?
Yes. Beverley Building Society is also launching a two-year, interest-only discounted mortgage deal. This will have a rate of 1.89%, and a completion fee of £1,495.
This will be available to those seeking purchase and remortgage applications.
A fixed-rate deal such as this for the next two years could well be appealing to many. This is particularly the case given the context of rising cost of living, and the increase in mortgage rates seen within the industry in recent months.
What does all this mean for me?
If you are a self-employed worker, such as a contractor or freelancer, in search of a good mortgage deal, the new offering from the Beverly is certainly be something to look into.
The higher LTV also signifies favourable steps being taken by a specific mortgage lender. Though Beverley Building Society does have a pre-existing strong affinity with the self-employed, it is good to see a lender make deliberate moves to support and attract this type of worker.
Beverley Building Society has said the move is to support small business owners who make a big difference to the UK’s economy. Hopefully other lenders will show their support in similar ways, giving self-employed workers a greater chance of securing the kind of mortgage deal they desire.
