The Beverley has made further enhancements to its interest-only and self-employed mortgage products.
The Beverley has increased our maximum LTV for all self-employed mortgages to 80%, whereas an LTV of 75% previously applied to those with only one year’s accounts.
Business owners can choose from all products in the Society’s range of 2- and 3-year discounted and fixed rates, starting from as low as 1.52%.
Self-employed borrowers account for 50% of the Society’s lending and Simon Glass (pictured), the Society’s head of new business lending, explained why the Society is so keen to help this significant borrower segment: “For some years now, the self-employed have represented a significant and underserved group of borrowers.
“They’ve traditionally found it tough to secure mortgages, compared to people in standard, employed roles, and the COVID-19 pandemic proved another blow.
“According to the Association of Independent Professionals and the Self Employed (IPSE), the number of unemployed people in the UK has dropped by 5%, from 4.3 million to 4.1 million – the second year in a row that their numbers have declined.
“However, despite these challenges, we understand the important contribution small business owners make to the UK economy and we are keen to help them in any way we can, as we do other niche borrower groups – hence this change to our LTV criteria on our self-employed mortgages.”
Meanwhile, the Society is also launching a new, interest-only, 2-year discounted mortgage at 1.89%.
It expects the product, which features a completion fee of £1,495, to appeal to large loan applicants for whom the attractive rate represents good value over the discounted period. The product is available for both purchase and remortgage applications.
It complements the Society’s existing, interest-only 2-year discounted mortgage rate of 2.19%, with no completion fee.
Glass added: “We’re working hard to continually review our mortgage offerings and respond where we see a market need.”
