Esbs updates MMC criteria
Earl Shilton Building Society (esbs) has changed its criteria to accept houses that are built using certain modern methods of construction (MMC) as a legitimate form of security.
This is applicable to houses that are a new-build not self-build, have warranty insurance from an esbs-approved provider and accreditation from the Buildoffsite Property Assurance Scheme (BOPAS).
Properties must have comprehensive building insurance in place from inception.
The mortgage must be held on a capital and interest basis following completion of the build and on a term not exceeding 25 years.
Other criterion includes a max loan amount of £250,000 and a max LTV of 75%.
Paul Tilley, chief executive of esbs, said: “We are proud to be setting ourselves further apart from a number of our competitors by unveiling a range of enhancements to the service we provide to our mortgage customers.
“Those who have historically found it more difficult to apply for a mortgage due to the perceived constraints placed on their existing property are set to benefit from these changes.
“Therefore, I would urge these people to get in touch with us right away to find out how we could help to make their dreams a reality.”
Esbs has also increased its standard maximum amount for a mortgage to £750,000 from its current limit of £550,000.
This also applies to self-build projects and to properties that carry a section 106 restriction or agricultural tie.
Esbs also require a lower maximum limit of £450,000 and will now consider leasehold flats and maisonettes once owned by local authorities.
In addition, the minimum income for interest-only applications has been reduced from £35,000 to £15,000.