Leeds BS to permit s106 lending
Ownership can be limited to people with low salaries or who live nearby, as s 106 agreements are sometimes made on new build properties.
Very few providers currently lend on properties affected by a s 106 agreement, limiting the choice for homebuyers and homeowners who are affected by the agreement when they go to remortgage.
Martin Richardson, Leeds Building Society’s general manager – business development, said: “A s106 agreement is increasingly becoming a common feature on new build properties, which is one reason we decided to make changes to our criteria to support more borrowers.
“We are always seeking to innovate and find new ways to respond to demand, particularly in under-served markets such as this, where the number of borrowers likely to be affected is sure to grow.
“In addition to applying to brand new properties, Section 106 can affect an existing property – at present, prospective home buyers or affected homeowners looking to remortgage to a better deal have very limited choice.”
Adrian MacDiarmid, head of mortgage lender relations at Barratt Development, added: “Leeds Building Society has made an enormous contribution to the new build mortgage market this year and this is another valuable step which broadens the appeal of their proposition into an area that is not otherwise well served.
“We look forward to further developing our relationship with them for the benefit of our mutual customers.”
And Kevin Belsham, UK sales and marketing director for Taylor Wimpey, said: “Today’s announcement from Leeds Building Society is a step change in the right direction, highlighting its proactive approach to engaging with housebuilders and mortgage brokers to offer mortgages that meet our customers’ needs.”