Newcastle Intermediaries has updated its residential lending criteria to help borrowers whose property is subject to a Section106 agreement.
A Section106 agreement is a planning obligation placed on a property by the local authority, to ensure the property meets certain local housing requirements, such as affordable housing.
To support brokers and their clients – especially those trying to get onto the property ladder – Newcastle Intermediaries has enhanced its criteria to permit Section106 properties. The updates are applicable across its standard mortgage product range, following its standard new build policy for maximum LTV and loan size.
Franco Di Pietro (pictured), head of intermediary mortgages at Newcastle Building Society, said: “Clients looking to borrow on a Section106 property have limited options. We’re absolutely committed to helping people onto the property ladder, and continually reviewing our underwriting approach across all areas, to meet customers’ needs.
“In response to broker feedback we’re pleased to enhance our lending criteria to include properties with a Section106 agreement in place and confident that it will make a real difference to brokers and their clients, especially those looking to make that first big step into home ownership.”