Esbs updates MMC criteria

Michael Lloyd

October 7, 2019

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).

The 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.

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