Smaller lenders launching innovative products

A quick test to start this week!  Have you heard of the Dudley Building Society?  What about the Buckinghamshire, Harpenden, Marsden, National Counties, or Newbury Building Societies?  Not necessarily household names, but not ones to be ignored either.  We are seeing these names and a lot more like them launching innovative products.  Not necessarily looking for huge volumes, but looking to fill gaps in the market and this should be applauded.  

One such example is from our good friends at the Saffron Building Society who have a superb product aimed at First Time Buyers.  The lender is offering a 95% mortgage with no credit scoring, to those who have never owned a property.  Customers will still be credit searched but cases are reviewed on a manual assessment, rather than a computer making the decision.  There is a five year fixed rate option and the arrangement fee is just £495.  This is not just aimed at New Build properties either!  Obviously terms/conditions and other fees may apply, but this kind of innovation is exactly what the mortgage market needs! Others will look at complex deals including guarantor mortgages, shared ownership, mortgages for the self employed, contractors, professionals, all types of Buy to Lets and Self Build projects. What this all demonstrates is that there is a huge appetite to lend.  However, many consumers are turning to the internet as it’s such a superb tool.  But it can also be a disadvantage as so much information, news and in-depth product detail can make it more confusing than planned.  A good ‘old fashioned’ face to face conversation with your local specialist independent mortgage brokerage might be the answer. They will, in most cases, have a relationship with the lenders (even those you’ve never heard of!), understand their requirements and ensure all the correct information is submitted from day one.  Some even have onsite underwriters from the lenders, so can turn things around quickly and especially useful if an urgent valuation is required in a contract race scenario.  There really is no better time to utilise the expertise and staffing levels they can provide for you in what’s becoming an over informed and more recently, highly competitive market place.