Lambeth Building Society has joined forces with a number of London housing associations, in a bid to improve access to the Shared Ownership scheme, writes Kirstie Redford.
The lender is also offering its lowest fixed rate mortgage to help promote the scheme.
It is aimed at people who cannot afford to buy property in the area in which they live. Those on council waiting lists and key workers such as police and teachers are prioritised but the scheme, which is run in conjunction with housing associations, is open to everyone. Borrowers buy a share of their chosen property while paying rent to the housing association on the remainder. They can then buy the remainder of the property over time.
Lambeth BS’s move into the market has been fuelled by the growing demand for housing solutions in London and the South East as more people are priced out of the property market. It has now made connections with a number of local housing associations and is currently handling £7m in loans.
The lender is offering its lowest two-year fixed rate product at 3.68% to those purchasers looking to take up the scheme, lending between 25% and 75% of the value of the property and up to 100% of the share being purchased.
Sean Wickes, general manager of sales and marketing at Lambeth BS, said: ‘The market place in the South and especially London is a key one for a society such as ours.’
Neil Armstrong, director of IFAs Sherwins Financial Management, said: ‘We have been working with housing associations for seven years, but it was not until Lambeth BS came on the scene that we have been able to offer better deals to borrowers. They really have taken the 100% mortgage market by storm, allowing people buying through the scheme to go on fixed rates was unheard of until now.’