April has launched a new build mortgage range that offers up to 90% loan-to-value alongside builder incentives of up to 5% and up to seven times loan-to-income.
The products will be open to both employed and self-employed borrowers and there are no early repayment charges when moving house or repaying the mortgage from the borrower’s own funds.
New build mortgage offers will be valid for up to nine months and the range will include fixed rates from five to fifteen years.
The lender is offering multiples of up to seven times income for borrowers up to 85% LTV who have a salary above £50,000 or who opt for a 10-year fix.
The products also feature unlimited overpayments and automatic rate reductions.
The rates are the same as for other purchase products, so a 90% LTV five-year fix is available at 5.45% with a £195 application fee and £995 completion fee, but no charge for valuations up to £1m.
This could then be topped up with a housebuilder incentive so that the borrower would only need to provide a 5% deposit.
April Mortgages director of mortgage distribution Rachael Hunnisett says: “We’ve built our criteria hand-in-hand with new build advisers and housing developers.
“Understanding the nuance of this sector has been central to shaping April’s innovative approach, so we can help more people into homes.
“Our new build criteria is designed to help advisers say ‘yes’ more often. “From higher income multiples and accepting builder incentives to 9-month offers and lending up to 90% LTV on flats, we’re making new-build lending simpler, more accessible, and adviser-friendly.”
Mortgage Advice Bureau strategic lender relationship director Rachel Geddes says: “By actively engaging with brokers and developers before building their proposition, April has created a product that truly aligns with the needs of new build customers.
Barratt Redrow head of mortgage lender relations Adrian MacDiarmid says: “Working collaboratively with April Mortgages, this new product has been designed to directly address the frustrations we hear day in day out from Londoners who feel priced out of the market.
“In many cases, it may even unlock homeownership sooner than they think.”
The New Homes Group Mortgage Services group managing director Terry Higgins says: “This is exactly what the new build market needs at the moment and I believe will allow more first-time buyers and home movers to buy a new build property.
“Greater affordability in the mortgage market is always welcome news for buyers, particularly in the new build sector where challenges around deposit levels, incentives, and lender criteria can often make the journey more complex.”
