Mansfield unveils self-employed and contractor mortgages

The Mansfield has added two fixed rate residential products to its Versatility range aimed at non-standard borrowers such as the self-employed and co

The Mansfield has added two fixed rate residential products to its Versatility range aimed at non-standard borrowers such as the self-employed and contractors.

The building society is offering a two-year fixed rate product at 3.49 per cent up to 80 per cent loan-to-value (LTV), which comes with an £800 completion fee.

Alternatively, borrowers can opt for a two-year fixed rate at 3.99 to 80 per cent LTV with a completion fee of 1.5 per cent of the loan amount.

Both products have no application fee, and the completion fee can be added to the loan.

Legal fees and valuation fees are paid by the customer.

Mike Taylor, head of products and savings at The Mansfield, said the products will help borrowers in niche segments such as the self-employed or contractors with limited proof of earnings, those on zero-hours contracts, family-assisted purchases and individuals who may have had historic credit issues.

Mr Taylor said the latest move came in response to increased demand for niche lending products and borrowers’ rush toward fixed rate options.

He said: “In the current interest rate environment, I think it is reasonable to expect increased demand for fixed rate products. 

“We believe that offering fixed rates, alongside our common-sense approach to underwriting, will give a real boost to those with unconventional circumstances that need the help of a pragmatic ‘can-do’ lender.

“The addition of our fixed rate products demonstrates our commitment to these niche markets – we’ll be announcing further updates to our Versatility proposition in due course.”

Bob Riach, principal at Scunthorpe-based Riach Financial Advisers, said: “The interest rates sound competitive, with not too high a product fee.

“It is good because there are more and more self-employed people nowadays and more on zero-hours contracts.

“A lot of lenders want three years’ accounts; some will take two years; only one or two will take one year’s accounts.”

simon.allin@ft.com

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