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Associate dentists, first-time buyers and self-builders to benefit from new mortgage products

Newly-qualified associate dentists, people aiming to get onto the property ladder and self-builders are just a few of the groups who are to benefit from the changes to Earl Shilton Building Society’s products and criteria.

The updates to the Society’s products and criteria are summarised as follows:

• Discount increase - All discounts on existing schemes have been increased by 0.25%, meaning the pay rate has reduced by 0.25%. These are detailed on the attached product guide, along with the three new products detailed below.

• Self-build product rate reduction - The Self-build product rate has changed from being 1% above the Society’s SVR for two years, to having a discount of 0.25% for five years. The pay rate has therefore reduced from 6.24% to 4.99%. The ERC period is still two years and borrowers can still switch to a retention product once the property is complete and they move in.

• New 95% product for local First Time Borrowers – To help FTBs in the Society’s local area, the Society has launched a 95% FTB-only product, with a discount of 2.25% for five years, giving a pay rate of 2.99%. This product has no higher lending charge, no arrangement fee and a free basic valuation. There is a £125 booking fee, the maximum loan is £250,000, there is a five year decreasing ERC, it must be a house (the max LTV on a flat or maisonette is 75%) and the property must be in postcode areas LE, CV9–13 or DE11-15.

• New ERC free product – Designed for those who desire flexibility to repay at their convenience, or those looking for shorter term finance, this new ERC-free product has a £125 booking fee and a 1% arrangement fee, with a minimum loan of £100,000.

• New Associate Dentist Product – There are a number of newly qualified Associate Dentists that are self-employed but do not have one year accounts. To help, the Society has launched a product for this group, who only need to have been in an Associate role for three months, which is a stepped discount of 2.00% for two years giving a pay rate of 3.24%, followed by a discount of 1.50% for three years, meaning a pay rate of 3.74%. Available up to 90% LTV, there is a £125 booking fee, no arrangement fee, a five year ERC period, a minimum loan of £75,000 and a maximum loan of £300,000.

• Restricted properties - Acceptable properties with a restriction such as those with an agricultural tie, a Section 106 discount clause or age-related (e.g. over 55) have only been available on certain products. The full product range is now available (subject to the T&Cs of each product).

• Right to Buy– Right to Buy and Right to Acquire (where up to 100% of the purchase price can be lent) have only been available on certain products. The full product range is now available (subject to the T&Cs of each product and the property must be a house and of standard construction).

• Capital Raising– Where general purpose capital raising has been agreed (up to 75% of the valuation), this has only been available on certain products. The full product range is now available (subject to the T&Cs of each product).

• Gifted Deposits and Gifted Equity now accepted – The Society will now allow 100% of deposit via a gifted deposit or gifted equity, subject to indemnity being arranged. If the LTV is over 75% then a Higher Lending Charge will be required. Available up to 90% LTV.

• Procuration Fees – The Society has amended its Procuration Fee from a tiered scale to simply 0.4% of the advance, with a minimum amount of £250.

Paul Tilley, Chief Executive of Earl Shilton Building Society, said: “The Society is pleased to be making a number of enhancements to our criteria and product offering.

“We believe that these changes, along with our manual underwriting approach and ability to assess applications on their own individual merits without credit scoring, will further help brokers to assist their clients with some of their more complex cases.”

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