Beverley Building Society has moved to help mortgage prisoners by launching freedom mortgages.
The society has responded to the FCA’s decision to look at transitional arrangements in order to flex its affordability rules to help borrowers reduce their mortgage repayments.
Beverley Building Society will consider offering discounted mortgages from 2.99% to those looking to borrow up to 80% of their home’s value and can demonstrate a positive payment track record.
The products come with a £999 product fee, which can be added to the loan, free legals and a £200 valuation fee.
Graham Carter (pictured), head of lending at the Beverley, 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.”
“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, tick-box 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.”