Family Building Society and Genworth link up
Family Building Society, which is part of National Counties, will utilise Genworth’s insurance policies in order to provide high LTV mortgages to new customers and becomes the latest building society to opt for a private insurance arrangement in order to offer higher LTV mortgages.
Genworth’s mortgage insurance products allow lenders to access bespoke arrangements which they can tailor to their own needs.
Simon Crone, vice president – Mortgage Insurance Europe at Genworth, said: “While the launch of Help to Buy 2 by the government has provided much-needed impetus in terms of the provision of high LTV mortgage lending in the UK, it has been apparent for some time that it was the building societies operating outside the Scheme who were leading the way in terms of both product design and pricing.
“This new relationship with the Family Building Society proves that societies are at the forefront in this market and are also committed to exploring new niche areas in order to support those potential borrowers who might otherwise have very few mortgage options available.
“We are extremely pleased that the Family Building Society has opted for Genworth’s private insurance arrangement which we believe provides better flexibility in terms of cover and premium options than they would find elsewhere or be able to secure through the Help to Buy Scheme.
“Over the past 12 months competition and product choice in the high LTV lending bracket has improved but we should also be mindful that Help to Buy 2 is due to finish by the end of 2016.
“It will be lenders like the Family Building Society that will hopefully remain at the forefront of the market not just now but well into the future and it is therefore vitally important that we have an exit strategy outlined for HTB2 well in advance of 2016. ”
Keith Barber, associate director, business development at the Family Building Society, added: “We chose Genworth as our preferred partner for the provision of mortgage indemnity given their fit with ourselves and their experience in the UK market.
“Genworth is an active associate member of the BSA and CML and is a Fortune 500 company providing financial services to 600 different institutions in over 25 countries and has been working in the UK market for some 18 years.
“It currently provides indemnity cover for a number of other societies and has been very helpful in working with us to put together the Family Building Society’s Low Start Mortgage proposition.”