Latest news from Earl Shilton Building Society

• Discount increase – All discounts on existing schemes have been increased by 0.25% meaning the pay rate has reduced by 0.25%. These are detailed on the attached product guide, along with the three new products detailed below.
• Self-build product rate reduction – The Self-build product rate has changed from being 1% above our SVR for two years, to having a discount of 0.25% for five years. The pay rate has therefore reduced from 6.24% to 99%. The ERC period is still two years and we will still allow a switch to a retention product once the property is complete and the borrowers move in.
• New 95% product for local First Time Borrowers – To help FTBS in the Society’s local area, we have launched a 95% FTB only product with a discount of 2.25% for five years, giving a pay rate of 99%. This product has no higher lending charge, no arrangement fee and a free basic valuation. There is a £125 booking fee, the maximum loan is £250,000, there is a five year decreasing ERC, it must be a house (the max LTV on a flat is 75%) and the property must be in postcode areas LE, CV9–13 or DE11-15.
• New ERC free product – Designed for those who desire flexibility to repay at their convenience, or those looking for shorter term finance, this new ERC free product has a £125 booking fee and a 1% arrangement fee, with a minimum loan of £100,000.
• New Associate Dentist Product – There are a number of newly qualified Associate Dentists that are self-employed but do not have even one year accounts. We have launched a product for this group, who only need to have been in an Associate role for three months, which is a stepped discount of 2.00% for two years giving a pay rate of 24%, followed by a discount of 1.50% for three years, meaning a pay rate of 3.74%. Available up to 90% LTV, there is a £125 booking fee, no arrangement fee, a five year ERC period, a minimum loan of £75,000 and a maximum loan of £300,000.
• Restricted properties – all products now available – Acceptable properties with a restriction such as those with an Agricultural tie, a Section 106 discount clause or age related (say over 55) have only been available on certain products. The full product range is now available (subject to the T & Cs of each product).
• Right to Buy – all products now available – Right to Buy and Right to Acquire (where we lend 100% of the purchase price) have only been available on certain products. The full product range is now available (subject to the T & Cs of each product).
• Capital Raising – all products now available – Where general purpose capital raising has been agreed (up to 75% of the valuation), this has only been available on certain products. The full product range is now available (subject to the T & Cs of each product).
• Gifted Deposits and Gifted Equity now accepted – We will now allow 100% of deposit via a gifted deposit or gifted equity, subject to indemnity being arranged. If the LTV is over 75% then a Higher Lending Charge will be required.
• Procuration Fees – We have amended our Procuration Fee from a tiered scale to simply 4% of the advance, with a minimum amount of £250.