Vernon Building Society has launched a new range of professional mortgages aimed at young professional homebuyers.
The new professional range is available to a wide variety of professionals, including doctors, solicitors, teachers, engineers, accountants and other regulated or specialist roles.
The range consists of four products. These include a five year fixed rate at 4.59%, an 80% maximum loan-to-value (LTV) LTV with a £999 fee and a five-year fixed rate at 4.74%, an 85% maximum LTV with a £999 fee.
There’s also a two-year 3.01% discount at 4.59%, an 80% maximum LTV with a £499 fee which offers no ERC up to 25% overpayment and a two-year 2.81% discount at 4.79%, an 85% maximum LTV, with a £499 fee which offers no ERC up to 25% overpayment.
The new products are open to employed and self-employed applicants across England and Wales and can be used for both purchase and remortgage.
The Vernon will consider applications from borrowers aged 18 to 75, with a minimum property value of £125,000 and a maximum loan of up to £1,000,000.
Across the range, the Vernon offers no maximum loan to income (LTI) ratio to allow underwriters to assess affordability using guaranteed future income.
The society will also allow part and part to be used up to 85% LTV, with up to 70% of the loan on interest only to help lower payments in the early years.
In addition, the society will consider applicants with just one year’s accounts if self employed, accepts customers still in their probationary period, and is open to gifted deposits.
Vernon Building Society head of mortgage and savings distribution Brendan Crowshaw says: “Affordability remains one of the biggest hurdles professional borrowers. Rising property prices often mean that even those with strong future earning potential – whether they are early in their careers or more established – struggle to access the homes they want today.”
“This new mortgage range reflects our new lending policy and applies our common sense approach to underwriting. By eliminating the LTI cap and allowing affordability to be based on guaranteed income rises, we’re helping professionals borrow in line with their career trajectory rather than being limited by current earnings.”
