Building society raises maximum LTV to 80%

Building society raises maximum LTV to 80%
 Credit: Ian Forsyth/Bloomberg

Dudley Building Society has increased its maximum loan-to-value from 75 per cent to 80 per cent.

The increase affects its two-year discount and two-, three-, and five-year fixed-rate residential products.

The lender has also resumed offering an interest-only option on its residential 1.05 per cent discount for term product.

The changes come as the lender began its ‘phased return’ to lending in August to help manage demand.

It had halted new mortgage business in March as the coronavirus crisis developed.

Sam Ward, commercial director at Dudley, said: “Having launched a series of new and exciting products in specialist niches such as shared ownership, right to buy, self-build and holiday let funding, the Society feels the time is right to look again at the core residential mortgage proposition.

“To that end, we have taken the next step by improving residential LTVs and reintroducing an interest only repayment option via a new discounted product.” 

Ms Ward added: “We are tuning our criteria in a way that increases our caseload in proportion to our ability to process, thus maintaining our reputation for not only meeting the expectation of our customers for competitive funding solutions, but also providing a fast reliable service to our introducer partners.”

Other lenders, meanwhile, have been temporarily withdrawing mortgages at higher LTVs.

Clydesdale and Yorkshire Bank, for example, informed brokers last week that it would be temporarily withdrawing the majority of its mortgages at 85 per cent LTV alongside other products to help “protect and improve” its service.

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