Darlington Building Society has launched a 95% LTV VISA mortgage and lowered rates to better support first-time buyers and skilled workers in the housing market.
Effective from today (3rd October 2024), the society will offer a 95% LTV mortgage with rates at 5.49% for a 5-year fix, and 5.89% for a 2-year fix.
There is no minimum income requirement for 90% LTV, and applicants need a minimum income of £60,000 for 95% LTV.
Louise Thorpe, chief customer officer at Darlington Building Society, said: “VISA mortgages are the jewel in the crown of our specialist mortgages.
“Offering up to 95% LTV with fantastic supporting criteria, these mortgages are now more accessible than ever.
“Skilled workers are crucial to the UK’s labour market, so it’s important that more skilled workers can put down roots and experience stability, which is exactly what we hope to achieve with our new VISA proposition.”
First-time buyers can take advantage of lower deposit demands and a new 40-year repayment option to ease monthly payments, with rates cut by up to 0.20% on 90-95% LTV fixed-rate mortgages.
Thorpe said: “Not all first-time buyers work a 9-5 job, so we’ve flexed our criteria to open the market for more aspiring homeowners in a range of circumstances.
“Combined with a 40-year term and reductions on both our fixed products, more affordable mortgages for first time borrowers have arrived. It’s about more than rates, our ethos is to find reasons to say ‘yes’ rather than ‘computer says no’.
“We know that no two applications are the same, so we balance automation and manual underwriting to provide mortgages that cater to a wide variety of borrowers while providing a smooth service for brokers.”
The society also removed the maximum age limit for buy-to-let (BTL) interest-only mortgages, aiming to support landlords seeking additional income as people live longer.
Thorpe noted: “We regularly review our lending criteria so that it continues to work for an ever-changing market.
“Because Buy-to-Let properties are usually an investment and therefore likely to provide an income, it feels counterintuitive to cap the age at which somebody can benefit from additional income.
“Particularly against the current financial landscape, where people are living longer and the state pension age moves further into old age.
“Planning a supplementary income is a sensible idea and we fully support responsible lending to enable that plan to be put into practice.”
For existing borrowers, Darlington has cut rates by up to 0.30% for remortgages and product transfers, putting their 80% LTV deals in the top 10% of the market.
The society is also offering cashback on remortgage exclusive products.
