Brokers See Red As Bath Building Society Keeps New Mortgage Product A Direct Buy Only

05 December 2012 Categories: News

Brokers See Red As Bath Building Society Keeps New Mortgage Product A Direct Buy Only

Mortgage brokers around the country are feeling rather insulted this week after Bath Building Society decided to keep their new student buy to let mortgage a direct buy only. The new mortgage is aimed at university students and has a 100% LTV. With the backing of their parents, students can now buy a property rather than rent one while at university, thus giving them more options for their post-education years.

But because of the complexities of the new buy to let mortgage, the lender, Bath Building Society, has kept it as a strictly direct buy only, upsetting mortgage brokers everywhere. When asked why the new option wasn’t open to mortgage brokers, Chris Powell, senior underwriter for Bath, commented “Discussion is obviously a large part of the sales process. All parties are made fully aware of the risks which go with the product which is why we won’t sell it through brokers so there’s no probability of it being sold for the wrong reasons.”

He then went on to say “We insist that there is enough rent to factor in for void periods and we require a minimum income from the parents. Parents need to be able to manage their own commitments so they can assist with the mortgage payments if necessary.”

On the other side of the coin though, Ying Tan, managing director of the Buy to Let Business said, “Any 100% LTV product should be treated with care but brokers have the experience and ability to advise their clients on complex products like this so I am a little insulted that they have chosen to restrict it for this reason.”