MortgagesNov 26 2014

BM Solutions increases max LTV on new-builds

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BM Solutions has increased the maximum loan-to-value on all new-build properties from 65 per cent to 75 per cent.

Phil Rickards, head of BM Solutions, said the change will give landlords greater support in providing rental accommodation.

”Having the same maximum LTV for flats and houses, and allowing those looking at new build to access our full product range, gives brokers confidence in our message that we are fully behind the new build sector.”

BM Solution’s change to LTV limits for new builds comes after Virgin Money changed its mortgage policy in relation to new-build incentives, by accepting cash incentives from builders of up to £1,000 on new-build properties to help towards purchase fees.

In a note issued to all new-build intermediary partners in September, Virgin Money stated that the new policy applied to all applications, including those through the Help to Buy equity loan scheme, while existing products remained unchanged.

emma.hughes@ft.com