The Loughborough Building Society mortgage allows buyers to borrow 5.5 times their salary

Could this shake up the mortgage market?

Getting the funds together to get on the first rung of the property ladder is still a challenge for many. But with lenders increasingly offering ever-more-flexible mortgage products there's now more scope than ever to find a mortgage deal that suits your particular needs.

Related: Best mortgage rates and how to find them

And one such product is the 2 Year Discount Variable Mortgage from The Loughborough Building Society. Applicants who have a minimum income of £50,000 for sole applicants and £75,000 for joint – with no restrictions on profession – will be able to borrow up to 5.5x their income.

loughborough building society

(Image credit: Future PLC/James French)

Generally banks and buildings societies will offer lending for a maximum of between 4 or 4.5 times applicants' salaries, so the above could open up borrowing opportunities for a wider spectrum of homeowners.

The maximum loan-to-value (LTV) is 85 per cent (subject to the Society's lending policy), which means buyers will still need to come up with a 15 per cent deposit. The minimum advance is £150,000, while the maximum is £750,000.

calender potted plant flower vase books pen on table

(Image credit: Future PLC/Allun Calender)

Suitable borrowers will be able to take advantage of a 2.45 per cent discounted rate for 2 years – which won't fall below 1.50 per cent for a period of 2 years from completion – with a £999 completion fee. The minimum term for the product is 2 years, while the maximum is 35 years.

The product is available for the purchase or re-mortgage residential property in mainland England and Wales for the applicants' own use.

Ashley Pearson, Business Development Manager at the Loughborough Building Society said: 'It’s great that we’re able to help even more borrowers afford their dream home, it’s important to take a common-sense approach to lending which I believe we do every day.'

living room with couch with cushions rug on floor

(Image credit: Future PLC/Claire Lloyd Davies)

A representative example is featured below:

A mortgage of £240,865, payable over 17 years and 7 months (211 months) initially on a discounted rate for 2 years (24 months) of 2.45 per cent and then on our current standard variable rate of 5.34 per cent for the remaining 15 years and 7 months (187 months) would require 24 monthly payments of £1,406.17 then 187 monthly payments of £1,722.94.

The total amount payable would be £358,035.76 made up of the loan amount plus interest (£115,626.76) with a £999 completion fee, £290 valuation fee, £30 CHAPS fee, legal fees of £105 and a mortgage exit administration fee of £120. The overall cost for comparison is 4.9 per cent representative APRC (Annual Percentage Rate of Charge).

Related: Half of homebuyers would take this BIG step to slash the cost of their monthly mortgage payments

Does this Loughborough Building Society mortgage deal appeal to you?