Last week the Post Office launched a 90% loan to value mortgage. Britannia and Coop also have similar products.
As of tomorrow Skipton Building Society is reported to be launching a 95% loan to value mortgage. The Skipton website has no information on any mortgage products awaiting the launch of the new mortgage range. This higher risk lending is priced more expensively than other lower loan to value mortgages. Given the small amount of equity in the should a conveyancer make a mistake the amount recovered by the lender is likely to be lower and the claim higher on the conveyancer concerned.
Despite the higher risk nature of the work for conveyancers we are not aware of any conveyancers that charge more for higher loan to value conveyancing to represent the risk. Maybe you can tell us otherwise?
Skipton Building Society has 850,000 members and over 90 branches across the country. As part of the Skipton network Connell estate agents run and manage their own panel of conveyancers so much of this work is likely to be referred through that network but this is also likely to be a product that intermediaries generally will promote.
Conveyancers generally should welcome increased loan to value mortgages in the market to assist clients who previously have taken on high loan to value debts to be able to move or remortgage.