Beverley Building Society is to offer a lifeline to borrowers trapped in high-interest mortgage deals elsewhere.
The Society is responding to the Financial Conduct Authority’s (FCA’s) decision, earlier this year, to look at transitional arrangements in order to flex its affordability rules – introduced in 2014 – to help borrowers reduce their mortgage repayments.
Beverley Building Society will consider offering mortgages from 2.99 per cent to people looking to borrow no more than 80 per cent of their home’s value, who can demonstrate a positive payment track record.
The Society’s Head of Lending, Graham Carter, said: “We see no reason why we wouldn’t want to extend a helping hand to so-called mortgage prisoners.
“Many of these borrowers have never missed a beat when it comes to paying their mortgage, yet they are laying out far more than they should be, which is having a devastating impact on many of their lives.”
Graham explained that this step is the latest example of the Society’s commitment to ‘common sense lending’.
“We’re passionate about remaining true to our mutual roots, by enabling affordable homeownership for as many people as possible, and in particular those with more complex circumstances.
“We take the time to really get to know our potential borrowers’ circumstances, making individual lending decisions and underwriting each case manually, rather than relying on the automated, tickbox decision-making which is so common in today’s industry.
“This is how we can seek to provide solutions for mortgage prisoners wherever possible, as well as doing our best to help the self-employed, people wanting to borrow in later life, those wanting to build their own homes, and really anyone who requires a little more time, effort and consideration.”