Dudley Building Society has moved to target the right to buy (RTB) market by making its discount for term product more accessible for borrowers.
The product now enjoys a larger discount for term of 1.20% (previously 1.00%) from the SVR (4.99%) and is currently set at 3.79%. The LTV has also been increased to 85% (100% of the discounted purchase price) from 80% LTV. Mortgages are available from £25k to £500k along with a £400 cashback paid on completion.
A further advance product is also available on a discount for term basis at the same rate as above, up to 85% LTV.
Speaking about the right to buy sector, Dudley Chief Executive, Jeremy Wood (pictured), said: “Since RTB rules were changed in 2012/13, over 85000 homes have been purchased by tenants, but it is an area which has tended to slip beneath the radar of many advisers as a source of new business.
“We believe that RTB represents a sizeable niche for introducers to become involved in and by revamping our proposition we are confident that our introducers will make the most of their opportunities to expand their activity in this underserved area of the property funding market.”
