The post The Loughborough Fortnight (Exodus to the Seaside) Exhibition at Loughborough Library appeared first on The Loughborough Building Society.
]]>The exhibition explores the memories of when the Loughborough factories closed for the summer holidays and everyone went off to the seaside.
This exhibition will be on display at Loughborough Library from July 10th until September 13th 2025, and it is free entry during the Library’s staffed hours.
For information on Loughborough Library including its opening hours visit: https://www.leicestershire.gov.uk/leisure-and-community/libraries/find-a-library/loughborough-library
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]]>The post Loughborough Building Society joins PMS Mortgage Club panel appeared first on The Loughborough Building Society.
]]>With over 8,000 advisers, PMS is one of the UK’s most established and respected mortgage clubs. Through this partnership, PMS members will now be able to access The Loughborough’s full range of residential and buy-to-let products, including lending in retirement, JBSP, family assist schemes, shared ownership, holiday lets, buy-for-university, and more.
As part of its ongoing strategy to enhance intermediary distribution, Loughborough Building Society remains committed to working closely with intermediary partners to deliver flexible, customer-focused solutions that respond to evolving borrowing needs across all stages of the lending lifecycle.
The Society recently launched its new mortgage origination platform, complete with integrated credit decisioning software, to further improve these intermediary relationships. Enhancements include soft credit checks during the Decision in Principle (DIP) stage, helping to protect applicants’ credit scores while allowing them to explore mortgage options. Additionally, the platform features enhanced case-tracking functionality and secure integration with selected solicitor panels.
Ashley Pearson, Head of Intermediaries at Loughborough Building Society, commented:
“Joining the PMS panel is a natural step in extending our intermediary footprint and making our proposition more widely accessible to brokers seeking flexible, considered lending options.
“We’ve worked hard to build a product range and service model that reflects the realities of modern borrowers, and we know that advisers value not just product availability but also lenders who are willing to take a pragmatic, case-by-case approach. This partnership opens new doors for advisers, and ultimately, for the clients they support.”
Claire Cherrington, DA Distribution Director at Sesame Bankhall Group, added:
“As a proactive partner for life, we support our advisers through every stage of their business journey—whether they are looking to start, run, grow, or exit their business. Loughborough Building Society’s comprehensive range of mortgage solutions, from first-time buyers to later life lending, and their commitment to individually underwritten applications without credit scoring, exemplify the kind of flexible, customer-focused approach we value. This addition to PMS Mortgage Club’s panel will enhance the options available to our advisers, enabling them to better serve their clients with tailored solutions across various lending needs.”
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]]>The post Hi Society Bulletin Spring 2025 appeared first on The Loughborough Building Society.
]]>Welcome to the Spring 2025 edition of your member magazine.
In this edition of your magazine, you’ll find an update from Chief Executive Gary Brebner on the latest activities at your Society and the latest news and events including how we have been supporting our Corporate Charity the Rainbows Hospice and celebrating the 20th anniversary, of The Loughborough sponsoring the Loughborough Town Hall panto.
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]]>The post Egg-citing Easter at Loughborough Building Society appeared first on The Loughborough Building Society.
]]>Easter Egg Donations:
To spread some Easter cheer, our Head Office and branches collected over 60 Easter eggs and donated them to the Beaumanor Care Home in Loughborough and Bankwood Care Home in Derby, ensuring each resident received a treat over the holiday weekend.
Both care homes expressed heartfelt gratitude for our donations. A huge thank you to everyone who contributed!
The Great Society Bake Off
The Great Society Bake Off made a triumphant return for its second year, with our very own Paul Hollywood, aka Chief Executive Gary Brebner, judging the star bakes. We saw some fabulous entries, including the winning lemon curd cake that stole the show!
A big well done to all our bakers who dedicated their time and efforts to produce some fantastic cakes.
All sales proceeds from these cakes will be added to our collection pot for our Corporate Charity, Rainbows Hospice.
Easter Colouring In Competition
Our branches hosted an Easter colouring competition, inviting children to colour in Easter eggs. We received some egg-straordinary entries from talented participants, with the best entries all receiving an Easter egg as a prize.
Finally, our branches also hosted Easter-themed raffles, with proceeds going to Rainbows Hospice. Thank you to everyone who donated!
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]]>The post Savings FAQs appeared first on The Loughborough Building Society.
]]>Opening an account is easy and you can do that in any of our branches or by post.
Simply download, print and complete the application form of the account you choose. Then return your completed form, necessary identification and opening cheque to your preferred branch/agency or post it to Loughborough Building Society, 56 Woodgate, Loughborough, LE11 2TZ.
Cheques should be made payable in the name of the account holder.
For postal applications we’ll accept photocopy identification documents.
You should also read our General Terms and Conditions and the Financial Service Compensation Scheme Information Sheet.
UK residents are able to open an account with us. There are age restrictions on some of our accounts and these are clearly marked in our product information.
We’re required by law to check the identity and address details of all account holders and operators. To do this we’ll ask you to provide documentation to verify your identity and address. You can find the information about the types of documents that we need for this purpose in our guide, Proving your identity.
Yes, we require a completed and signed application form for each account you open with the Society, even if you’re transferring funds from an existing Loughborough account.
If you decide that your new account isn’t right for you, you can close it within 14 days of the open date without notice or penalty. However, this does not apply to accounts where the interest rate and term are fixed.
Yes you can. You’ll need to download and complete a standing order form. Alternatively you can request one by emailing [email protected], visiting one of our branch or agency offices or telephone 01509 631960 and we’ll be happy to help.
For wages or credits into your account, please use sort code 30-00-80, account number 01781004 and ensure your Loughborough account number is quoted as the reference.
If you’re making a deposit by cheque, please make it payable to the person named on the savings account, do not make it payable to the Society.
When you pay money into your account by cheque, interest is payable from the next working day and cash payments earn interest from the day of receipt. The total balance of your account will continue to earn interest up to and including the day before any funds are withdrawn.
Yes, we are currently accepting Cash ISA transfers from another provider.
If you wish to transfer part or all of your Cash ISA or your full Cash JISA to The Loughborough from another provider, you’ll need to complete an ISA/JISA application form and an ISA Transfer Authority Form or JISA Transfer Authority Form. We’ll then communicate with your current provider to arrange the transfer.
Yes. To transfer an ISA out of the Society you’ll need to check if the other ISA provider will accept a transfer and complete any forms that are required by them. Your new ISA provider will then ask The Loughborough to transfer your account.
On receipt of your request, the Society will:
The Society will normally only require two working days’ notice to transfer an Instant Access ISA to another provider.
Yes and you can choose whether to transfer the whole or part of the balance in your ISA account to a new provider. If the transfer relates to subscriptions for the current year then the whole of those subscriptions must be transferred. Funds in an ISA from previous years can be transferred from one ISA manager to another in whole or in part.
You can make withdrawals in person at a branch using your passbook (withdrawals are not permitted without a passbook).
Requests for cheque withdrawals and CHAPs transfers can also be processed in Head Office. Please complete a Withdrawal form and send this with your passbook.
You can withdraw up to £500 in cash per day or £99,999 by cheque per day from any of our branch or agency offices. Larger amounts of cash, up to £2,000, and cheques over £99,999 are available provided you give at least 24 hours’ notice.
The passbook must be produced at the time of the withdrawal and you can’t withdraw against a cheque receipt until 6 working days after the date of deposit.
There is no limit to the amount of funds that can be withdrawn by cheque from Postal accounts.
You’ll be able to withdraw against a cheque after six working days. Saturdays and Sundays don’t count as working days.
If you would like to close your account you can do this by visiting a branch/agency or by post.
Cash is only available in branch/agency and subject to our daily limit of £500, withdrawals over £500 require 24 hours’ notice. For our members’ security, the maximum amount of cash that can be withdrawn on any one day is £2000.
Cheque withdrawals up to £99,999.99 can be done immediately, for £100,000 and above we’ll need 24 hours’ notice.
You can choose a telegraphic transfer however there is a charge for this option, you can find more details in our Savings Tariff of Charges.
You can download, print and complete a Change of Address Form and send it to:
56 Woodgate, Loughborough, Leicestershire, LE11 2TZ
Alternatively, you can contact us on 01509 631960 or email [email protected] and we’ll be happy to send a form to you.
You can download, print and complete a Change of Name Form and send it, together with identification* in your new name and evidence of the name change** to:
56 Woodgate, Loughborough, Leicestershire, LE11 2TZ
Alternatively, you can contact us on 01509 631960 or email [email protected] and we’ll be happy to send a form to you.
*We’ll require one of the items from List A in our Proving you Identity leaflet
**Marriage Certificate, Decree Absolute or Deed Poll Certificate (as appropriate)
Copies of identification documents will be accepted if they’re certified by a solicitor, banker, authorised financial intermediary, FCA regulated mortgage broker, accountant, teacher, doctor, minister of religion or postmaster/sub C postmaster. The person undertaking the certification must be available for contact by the Society either by telephone or in writing. Please ensure that the appropriate contact details are stated on the identification.
When certifying a document, the following wording must be used: “I certify that this is a true copy of the original”.
You can view our current and previous saving interest rates online or in any of our branch/agency offices. Alternatively if you email [email protected] or telephone 01509 631960 we’ll be happy to send you a leaflet.
When interest rates change, and the change is a reduction, you’ll be given at least 14 days’ notice of any interest rate changes on your account before they become effective.
Where the change is an increase, we’ll update our website and branch notices.
We’ll also provide a summary of rate changes throughout the year within our Annual General Meeting communication sent to Society members each January.
Our current savings rates are available can be found on our current savings rate leaflet.
There are no fees for the general operation of your account however, there are other charges we may make. You can find this information in our Tariff of Charges.
Interest on non-ISA related accounts is reported when it’s either credited to the account or paid and shared with HMRC annually.
The introduction of a Personal Savings Allowance means that from 6 April 2016 most people will no longer pay tax on their savings income.
The allowance is £1,000 for basic rate taxpayers and £500 for higher rate taxpayers (there is no allowance for additional rate taxpayers). Interest from ISAs doesn’t count towards your Personal Savings Allowance because it’s already tax-free.
You can find more information at https://www.gov.uk/apply-tax-free-interest-on-savings
Since 6 April 2016, saving interest has been paid without the deduction of tax (Gross). However, you may be liable to pay tax depending on your income, for further details go to www.gov.uk and search Personal Savings Allowance.
A Section 975 statement shows the total interest paid on a savings account during a tax year (6th April to 5th April). Generally you’ll only need a 975 statement if the interest you earn is more than your Personal Savings Allowance.
To request a 975 statement please call us on 01509 631960 or email [email protected] and we’ll post one to you.
Members are eligible to vote at our Annual General Meeting if they are the first named on a share account and have more than £100 in the account, or are a first named borrower with more than £100 outstanding.
All accounts, other than our Deposit Accounts, are share accounts and so account holders are members of the Society.
A Lasting Power of Attorney or an Enduring Power of Attorney where the donor doesn’t have mental capacity, needs to be registered with the Office of the Public Guardian before we can register it on an account. You can find more information about this here.
Once the Power of Attorney has been set up it can be registered with us to open a new savings account or to start managing an existing one. We’ll need to see the original Power of Attorney document or a certified copy.
Photocopy documents can be certified by an appropriate person such as a solicitor, accountant, bank or building society official or other financial services approved person and sufficient information must be provided to enable us to contact that person. We’ll also need identification for the attorney/s.
Visit us in branch or call us on 01509 631960 to discuss your individual needs, we’ll be happy to help.
You may also find this leaflet useful as it provides guidance on managing an account for someone else.
You must inform us of the death of an account holder by providing us with the original or a certified copy of the death certificate. You can either post this to us at:
Loughborough Building Society
56 Woodgate
Loughborough
Leicester
LE11 2TZ
Or hand it to one of the staff at your nearest branch or agency office.
Copies can be certified by a solicitor, banker, authorised financial intermediary, FCA regulated mortgage broker, accountant, teacher, doctor, minister of religion or postmaster/sub C post master. The person undertaking the certification must be available for contact by the Society either by telephone or in writing. Please ensure that the appropriate contact details are stated on the identification.
When certifying a document, the following wording must be used: “I certify that this is a true copy of the original”.
Upon notification of this, if the account is a sole account, it is suspended until the necessary Statutory Declaration/Grant of Probate is received. The account is then closed and the funds distributed accordingly. In the case of joint accounts, the name of the deceased holder is removed from the account and it reverts to being a sole account.
We understand that registering the death of a loved one can be a difficult time and there’s a lot to do. There’s a useful service called Tell Us Once which lets you inform most government departments about the death all at the same time.
If you lose your passbook, you must contact the Society as soon as possible to inform us and we’ll register your passbook as lost/stolen. A warning will be placed on your account which prevents any withdrawals being made until a lost passbook form has been completed and you’re issued with a new passbook and account number.
Yes we do and you can find information about the scheme in the Financial Services Compensation Scheme Information Sheet here.
We’ll only send you a statement of account annually if you don’t have a passbook recording the transactions on your savings account.
At the Loughborough we’re committed to providing our members with the best possible service. However, we recognise that there may be occasions when you feel that we haven’t met your expectations. Should you wish to make a complaint our guide has all the information you need.
You can find out if you have an account with The Loughborough or with any other bank or building society by using this free government service www.mylostaccount.org.uk
Charitable Assignment was set up in 2000 and means that for customers who joined the Society since it was introduced, any windfall payment in the event of demutualisation would be paid to the Charities Aid Foundation. Details can be found on Savings application forms.
If we delegate any of our functions or responsibilities under this agreement to anyone else, we will satisfy ourselves that the person or organisation we delegate to will be competent to carry out those functions and responsibilities.
If you have a question which is not answered in the above FAQ’s or if you require any further information or guidance, please use our online contact form or telephone us on 01509 610707.
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]]>The post We’re updating our Savings Terms and Conditions appeared first on The Loughborough Building Society.
]]>We’re adding two new conditions. These relate to Authorised Push Payment (APP) Fraud and Confirmation of Payee (CoP). Both these elements of banking regulation are already in place.
The updated Savings Terms and Conditions can be found here.
With effect from 7 October 2024 new rules were introduced by the Payment Systems Regulator (PSR) to protect consumers who are subject to APP Fraud. These rules make it easier for eligible victims of APP fraud to claim a refund, by introducing mandatory reimbursement, and ensure that victims receive consistent levels of protection. We’ve included details related to your rights and eligibility.
Click here for further information on Authorised Push Payment (APP) Fraud.
We use Confirmation of Payee (CoP) to help protect against fraud and make sure payments go the right person and the details provided match the intended recipient. CoP checks whether the recipient’s name matches the account details. The changes highlight how CoP works.
Click here for further information on Confirmation of Payee.
For further information please get in touch with our savings team on 01509 631960 or email [email protected]
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]]>The post Loughborough Building Society launches Universal Credit Calculator appeared first on The Loughborough Building Society.
]]>Now available on The Loughborough website, this interactive tool clarifies how various income sources factor into a client’s borrowing requirements and what the lender will accept. It also simplifies an often misunderstood aspect of mortgage lending, enabling brokers to guide clients through the application process with greater confidence.
Additionally, the Society has expanded its range of assessable benefits, further improving accessibility to homeownership for a wider pool of applicants.
The following benefits will be assessed at 100% of income: Universal Credit, Child Benefit, Job Seekers Allowance, Pension Credit, Carers Allowance, Attendance Allowance, and Constant Attendance Allowance.
The following benefits will be assessed at 50% of income: Working Tax Credit, Child Tax Credit, Personal Independence Payment, Disability Living Allowance, Employment & Support Allowance, and Adult Disability Payment.
Ashley Pearson, Head of Intermediaries at Loughborough Building Society, commented:
“This enhancement reinforces The Loughborough’s commitment to adapting its lending criteria to better serve the needs of modern borrowers, ensuring more people can access the right mortgage solutions for their circumstances.
“The Loughborough is dedicated to making mortgage lending more inclusive and we recognise the unique challenges faced by borrowers relying on Universal Credit and other benefits. Our new calculator accounts for these complexities, offering a clear understanding of assessable income when determining mortgage affordability. This ensures our intermediary partners can provide clear, simple and accurate guidance to those who need it most.”
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]]>The post Improving affordability for borrowers appeared first on The Loughborough Building Society.
]]>Borrower affordability has become a growing challenge in the UK over the last few years, as rising interest rates, high inflation and increased living costs have placed significant pressure on household incomes.
This has led to more homeowners feeling the financial squeeze, with some struggling to meet mortgage repayments and general living costs, while others have been forced to make significant cutbacks to the way in which they live their lives.
The challenges around mortgage affordability look set to remain in 2025 and beyond, as interest rate fluctuations, stagnant income levels and high house prices continue to exacerbate longstanding affordability issues.
Addressing these affordability challenges has been a key priority for lenders over the last 12 months, many of whom have sought to implement strategies and enhance lending criteria to help support borrowers to maintain financial stability and buy a home.
The old-school way of assessing mortgage affordability no longer fully serves the needs of every modern-day borrower, as a growing number have multiple or varied income streams; will live and work for longer than their parents and grandparents; and buy their first home much later in life.
This means lenders need to work closely with the intermediary market to understand what challenges their clients are facing and adapt mortgage products accordingly so they allow more borrowers to access the property market.
As a lender who actively engages with our intermediary partners, we continuously seek feedback that highlights the borrower’s concerns, helping us refine and evolve our proposition to better serve their needs. Most recently, this involved increasing the LTV on our 5.5x income multiple calculation from 85 per cent to 95 per cent to provide greater borrowing potential for residential borrowers who meet our lending requirements.
The enhancement provides greater flexibility for many borrowers, especially the self-employed with only one year’s accounts and higher-income applicants seeking more flexibility in their mortgage options.
Greater flexibility around the underwriting process is important when it comes to improving affordability, which is why we also plan to extend the types of income accepted across certain products. This will enable borrowers to include income earned from overtime, bonuses and commissions in their mortgage application, up to a maximum 75% LTV. Borrowers working a second job can now also include 100% of the income earned from their secondary occupation, irrespective of whether it relates to their main occupation.
As well as enhancing lending criteria, there are many other products specifically aimed at helping borrowers facing affordability challenges already in the market. Government-backed schemes such as Shared Ownership, Discount Market Value and First Homes mortgages, for example, have all been created to help borrowers overcome affordability hurdles by purchasing a home at a reduced rate.
Products like Joint Borrower Sole Proprietor (JBSP) mortgages are also growing in popularity, enabling borrowers to boost their borrowing power by combining the incomes of up to four family members to purchase a property.
This can be an extremely helpful way for parents to support their children’s homebuying aspirations, without having to gift a lump sum for the deposit. It can also prove a more affordable solution in the current climate as they can use their income, home or savings as a security rather than gifting money.
Recognising the affordability challenges many borrowers face is crucial in today’s mortgage market, and lenders play a key role in easing financial pressures. This requires proactive steps to develop innovative products, policy and criteria that help borrowers navigate economic difficulties and expand access to solutions that support their borrowing needs in a sustainable and affordable way. And this is a role which will continue to evolve to reflect ever-changing economic, market and borrowing demands moving forward.
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]]>The post Careers at The Loughborough appeared first on The Loughborough Building Society.
]]>The post Loughborough Building Society extends 5.5x income multiples to 95% LTV appeared first on The Loughborough Building Society.
]]>This criteria change aims to provide greater borrowing potential, particularly for self-employed individuals with only one year’s accounts and higher-income applicants seeking more flexibility in their mortgage options.
The minimum income requirement remains at £50,000 for sole applicants and £75,000 for joint applications and applies across The Loughborough’s residential mortgage range.
Additionally, the Society maintains its flexible approach to credit history, retaining its potential to disregard any defaults which have been resolved over two years and CCJs settled over three years. Historical defaults on telecoms, mail order, utilities, or bank accounts can also be disregarded if resolved at least three months prior to the mortgage application.
Ashley Pearson, Head of Intermediaries at Loughborough Building Society, commented:
“This enhancement reinforces The Loughborough’s commitment to adapting its lending criteria to better serve the needs of modern borrowers, ensuring more people can access the right mortgage solutions for their circumstances.
We recognise the challenges many borrowers face when trying to secure the borrowing they need, particularly those who are self-employed or have seen recent income growth. By increasing our income multiple to 5.5x up to 95% LTV, we’re providing a more flexible and expansive solution that enables those looking to purchase or remortgage to maximise their borrowing potential in a responsible manner.”
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]]>The post Annual General Meeting 2025 appeared first on The Loughborough Building Society.
]]>The post Annual General Meeting 2025 appeared first on The Loughborough Building Society.
]]>The post Leicestershire building societies relaunches lenders live event appeared first on The Loughborough Building Society.
]]>Following the outstanding success of the inaugural event held at Leicestershire County Cricket Club in November 2023, the ‘Five Foxes’ are set to bring their unique insights and expertise to intermediaries across the UK. Four regional events will be hosted in Southampton, Exeter, Wetherby, and Warrington, with dates and timings to be confirmed in the coming months.
This intermediary-focused series aims to provide attendees with invaluable perspectives from each Society, both individually and as a collective. Highlights of the event will include:
Gary Brebner, CEO at Loughborough Building Society commented:
“Building on the success of our previous event, and the numerous conversations it has since sparked, we felt it was essential to bring this initiative back and extend it to intermediaries across the UK.
“While each Society maintains its own unique approach and USPs, we’re united in our mission to deliver specialist lending solutions that truly impact a diverse range of borrowing needs. We hope brokers nationwide will recognise this commitment and identify the opportunities on offer as we take this exciting event on the road throughout 2025.”
Barry Carter, CEO at Hinckley & Rugby Building Society said:
“We’re delighted to once again team up with some of our fellow Leicestershire-based societies to spread the word about how we, as lenders, are providing innovative solutions to meet the changing needs of borrowers.
“Building societies have a hugely important role to play in the UK mortgage market and so it’s vital that we invest in events such as these to ensure intermediaries nationwide are aware of our respective propositions and how they can help more and more borrowers achieve their home ownership aspirations.”
Simon Taylor, CEO at Melton Building Society, remarked:
“Following the great success of our first event. I am delighted that we will be engaging our broker communities across the UK. These events really help shape our product and distribution strategy at The Melton and I am looking forward to the great conversations that will flow.”
Scott Devereux, CEO at Earl Shilton Building Society, stated:
“We’re thrilled to once again join forces with our fellow Leicestershire-based societies to highlight how we, as lenders, are delivering innovative solutions to meet the evolving needs of borrowers.
“Building societies play a vital role in the UK mortgage market, offering tailored and customer-focused lending options. Through events like Leicestershire Lenders Live, we aim to ensure intermediaries across the UK are fully aware of our unique propositions and how we can help more borrowers achieve their homeownership aspirations. We’re excited to bring this initiative to new audiences in 2025.”
Iain Kirkpatrick, CEO of Market Harborough Building Society, added:
“With five unique and successful building societies in Leicestershire all offering brokers more choice for their clients, it makes sense that we join forces to spread the message not just locally but with brokers we can help across the country.
“As more brokers look to diversify in 2025, these events will provide a handy snapshot of how regional societies can support both traditional and specialist forms of lending, including bridging finance. And it’s time to show that larger doesn’t always mean better. We’re agile and can adapt to the changing market to best support broker and client needs.”
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]]>The post Hi Society Winter 2024/2025 appeared first on The Loughborough Building Society.
]]>Welcome to the Winter 2024/25 edition of your member magazine.
In this edition of your magazine, you’ll find Gary Brebner’s summary of our annual results for 2023/24, information on the Society’s new corporate charity, and the latest news and events
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]]>The post Shared ownership: An affordable path to homeownership? appeared first on The Loughborough Building Society.
]]>Plans to tackle England’s housing shortage have recently been outlined by the new Labour government, with increased focus and targets being given to areas where housing is least affordable.
The aim is for 370,000 new homes to be built in England every year, with a promise made by Housing and Planning Minister Matthew Pennycook to create 1.5 million new homes within the next five years.
With local authorities being told to give developers permission to build, the announcement is a bold move by the government, which it hopes will go some way to addressing the housing crisis across the UK.
According to government figures, there are 1.3 million households on social housing waiting lists and 160,000 children in temporary accommodation; not to mention the millions of people who are unable to afford to buy their first home.
While time will tell whether the government will succeed in reaching its lofty housebuilding target, the announcement does however, shine a light on the ongoing need for workable solutions that help borrowers achieve their homeownership goals.
Shared ownership mortgages have been offering a homebuying solution to qualifying borrowers since the product was first launched in the 1980s. Since then, demand for the product has remained high as house prices have continued to rise over the years and the need for larger deposits has also grown.
One challenge of the scheme is that shared ownership mortgages are limited to qualifying properties, which makes the government’s focus on building more affordable homes a welcome development for the sector. On the positive side, saving for a deposit is often more achievable, as these are typically between 5% and 10% of the share purchased, resulting in a lower initial outlay for the borrower.
Over time, and as budgets allow, borrowers can also increase their share of the property by “staircasing” to buy a larger stake. This helps them build more equity in the property and lays the foundations for greater financial wealth.
Traditionally, staircasing has been capped at a maximum share of 75%, but there are alternatives. Here, at The Loughborough, we’ve recently enhanced our shared ownership mortgage solution to offer up to 95% of the share borrowers can staircase to when they remortgage.
This provides those borrowers taking out a shared ownership mortgage with the opportunity to own a larger share of their home, encourages greater longevity in the scheme and helps to set them on the path to full homeownership further down the line.
Shared ownership mortgages can be taken out on a variety of properties, including new build houses, new build flats and second-hand flats, with LTVs ranging from 95%, 90% and 80% respectively. As previously stated, staircasing is also now acceptable at up to 95% of the share, and a minimum share of 25% is required in all cases.
Some lenders in this space adopt a more personalised underwriting approach, enabling them to offer flexible product features tailored to each client’s unique needs. This can be particularly beneficial for self-employed applicants with just one year of employment history and financial records, rather than the usual two.
Borrowers with a history of adverse credit, such as those with CCJs or missed payments, can also be considered. We even accept benefit income provided it does not exceed 50% of the applicant’s total income. Mortgage terms are also available up to a maximum of 40 years to demonstrate how accommodating many specialist offerings can be in this product space.
As we approach 2025, hopes for greater economic stability and an increase in affordable homes offer new possibilities for borrowers aiming to step onto the property ladder. This also presents intermediaries with a chance to collaborate with lenders providing shared ownership solutions, and in supporting a wider array of clients who are seeking more accessible routes to homeownership.
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]]>The post Don’t discount the power of a discount mortgage appeared first on The Loughborough Building Society.
]]>Discount mortgages are a frequently misunderstood area of the mortgage market, but for the right borrower, they can be a useful financial tool offering greater flexibility over their monthly mortgage payments and future needs.
While it’s true that many borrowers tend to prefer the certainty of a fixed rate product, especially in a period of economic instability, there are circumstances where a discounted mortgage product may prove more attractive and better suited to clients’ needs.
A common misconception around discount mortgages is that the interest rate can fluctuate wildly on a regular basis, leaving borrowers with the risk of being unable to cover the cost of the mortgage.
While, of course, it’s important to stress test affordability at the highest possible level to ensure borrowers can continue to repay the mortgage, it’s also important to note that the discounts on offer are directly related to a lender’s SVR and not the Bank of England base rate.
This means that any decision to increase or decrease the SVR is made by the lender. It also means that if the Bank of England increases or decreases the base rate, it doesn’t mean the lender will follow suit.
Discounted mortgages can offer greater levels of flexibility for those borrowers who may find themselves in a position to regularly overpay. This can be an ideal solution for borrowers with more cash at their disposal or those who can afford to absorb any fluctuations in payments that may occur over the mortgage term.
Unlike fixed rate products, it can be the case that there are no limits or penalties for overpaying, which can help those borrowers with potentially more irregular income streams who may be looking to clear their mortgage faster. This can be particularly useful for borrowers who know they are coming into a large amount of money during the mortgage term, perhaps due to selling other assets or coming into some inheritance.
Although paying off a mortgage before the end of the deal often comes with an early repayment charge (ERC), these ERCs can be much less onerous with a discount mortgage, ensuring that borrowers can make further savings should they need to exit the loan early.
For example, here at the Loughborough, the ERC on our discount product range is currently set at 0.5% in the first year and 0.25% in the second year. The equivalent of only £1,000 on a £200,000 loan in the first year of the mortgage and £500 in the second year, depending on the total balance and term left at the time of redemption.
This can be an attractive proposition for those borrowers who may require an option to leave the mortgage before the end of the current term or those who may benefit financially from moving early to another mortgage product due to expected or unexpected positive market movement.
Admittedly, a discount mortgage may not appeal to every borrower, and while there will always be situations where a discounted mortgage will not represent the best fit for the client, there will also be cases where the flexibility of a discount mortgage can be of great benefit. Key factors to underline how discounts are playing an increasingly prominent role in the advice process for many borrowers.
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]]>The post Loughborough Building Society incorporates savings boost option into later life lending proposition appeared first on The Loughborough Building Society.
]]>Loughborough Building Society has announced a criteria change to its lending in retirement proposition which will allow borrowers to raise capital in order to bolster their savings pot.
Cases will continue to be assessed on an individual basis with applicants potentially able to raise funds for a combination of purposes including home improvements, debt consolidation, gifts to family, new car, care home fees, holidays, deposit on a second home/buy-to-let property and/or to replenish their savings.
This improvement is designed to further strengthen The Loughborough’s unique approach to later-life lending and its comprehensive product offerings. It follows a significant enhancement to its lending in retirement proposition in September 2024 when the Society moved to assess income at 4.5x up to the applicant’s retirement age, marking a notable increase from its previous 3.5x income assessment.
For applicants already aged 80 or over, The Loughborough will continue to consider applications with a maximum income multiple of 3.5x for both single and joint applicants.
Ashley Pearson, Head of Intermediaries at Loughborough Building Society, commented:
“As a Society, we continually strive to adapt and evolve our product offerings to better meet the needs of borrowers throughout their lending journey. This latest enhancement to our lending in retirement criteria demonstrates our ongoing commitment to providing flexible and responsible solutions, empowering borrowers to make the most of their later years and achieve their financial goals with the support they deserve.”
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]]>The post Loughborough Building Society Announces Rainbows as its New Corporate Charity Partner appeared first on The Loughborough Building Society.
]]>The Loughborough Building Society is delighted to announce its partnership with Rainbows Hospice for Children and Young People as our new corporate charity. This exciting collaboration marks a renewed commitment to supporting the vital work that helps make a difference in the lives of families across the region.
Rainbows, based in Loughborough, provides specialist support to babies, children and young people with life-limiting and life-threatening conditions. The hospice also extends its care to families, offering emotional and practical support during some of the most challenging times.
At The Loughborough Building Society, we take pride in being part of the local community and our partnership with Rainbows reflects our dedication to giving back, Over the coming year our team will be involved in a range of fundraising activities and volunteering initiatives to support the charity’s essential services.
Lisa Burns-Kent, Head of Marketing and Business Development at The Loughborough Building Society, said: “I am thrilled to announce our new partnership with Rainbows, a charity that provides vital support to children, young people and babies. This collaboration reflects our commitment to making a positive difference in the community. I’m excited about the opportunities ahead to work together and help bring care, and support to those who need it most.”
Kate Golding, Head of Relationship Fundraising at Rainbows, said: “We are thrilled that the Loughborough Building Society has chosen us as their charity partner. We rely on our supporters to help us to continue providing care and support to hundreds of babies, children and young people at our hospice, in hospital and at home. We look forward to an exciting year ahead.”
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]]>The post Catering for borrowers with large age gaps appeared first on The Loughborough Building Society.
]]>The UK mortgage market has undergone significant change over the last few decades, with shifting social dynamics, high and rising house prices and stagnant wages all playing a major role in the changing mortgage landscape.
With the average UK home costing 8.8 times the average earnings last year, according to House Buyer Bureau research, many would-be homeowners are also struggling to save for a deposit to buy their first home. The impact of this has been a change in the average profile of the UK mortgage.
In recent years, there has been a significant amount of emphasis on intergenerational lending and the Bank of Mum and Dad, much of which has focused on the uptick in the growth of gifted deposits and sizeable loans to help younger generations buy their first home.
However, recent economic challenges have seen a new type of intergenerational borrowing begin to emerge, with more parents joining forces with their children to buy a home that they also own, or indeed, live in, alongside their children.
We’re often asked by brokers about how this type of mortgage works in practice, particularly given the age differences between parents and their children. In some cases, this generational gap can be anything up to 35 or 40 years.
Many of these questions specifically relate to how affordability is assessed, given the fact that the parents are often in, or approaching, retirement age, but may have more income or wealth than their children.
While each application is assessed on its own merit, as a general rule, we would typically assess affordability on the youngest person’s income, provided we do not need to include the older person’s income to secure the mortgage.
For example, we recently received an application from a mother and father aged 85 and 84 respectively who were looking to remortgage a property. Their 55-year-old daughter lived with them, and they decided they wanted to include her in the ownership of the house, so the property was remortgaged in all their names.
However, only the daughter’s income was used for affordability purposes on the mortgage as it was enough to satisfy lending requirements. In this situation, the parents were able to remortgage the property as required and remain living in it with their daughter, who is now one of three legal joint owners.
There was also a case where parents wanted to buy a bigger house with their son and daughter and their part of the deal was to finance the deposit. In this case, the income of the children was used for affordability purposes, but the parents were also named on the mortgage. This allowed them to buy a bigger house to live in together, so that the children can care for their parents in the future.
It’s also worth noting, however, that it’s not just applications from parents and their children where a significant gap in age can occur. We recently had an application from a husband aged 77 and his wife, aged 37, who were looking to remortgage away from their current lender.
As the affordability fitted with just the wife’s income, we could consider the loan to value (LTV) and term of the younger applicant and not the older applicant. However, the husband was still named on the mortgage and remained a joint owner of the home.
Given the affordability challenges facing many borrowers over the last few years, brokers are likely to see more applications from people clubbing together to buy a home. Some of the cases may well include applicants over the age of 50 or with a large gap in age between the borrowers.
Speaking to a flexible lender who is familiar with handling such cases can help to ensure the application is successful.
It can also help brokers gain an understanding of mortgage applications with large age gaps and ensure their clients get the financing they need to buy a home.
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]]>The post Hi Society Bulletin Autumn 2024 appeared first on The Loughborough Building Society.
]]>In this bulletin, you’ll find an update from Chief Executive Gary Brebner on the latest activities at your Society and the latest news and events including the official opening of our new head office and member panel visit.
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