Mortgage News
Darlington BS launches 95% mortgage as part of local scheme
Darlington Building Society has partnered with Tees Valley housing association to offer a 95% LTV mortgage.
The Building Society said the 95% purchase deal is part of a local housing scheme in Darlington and is only available on homes at the Woodland View development site in the area.
The scheme has been built with the help of £4m of funding from the Homes and Communities Agency.
David Copland, sales and marketing controller at Darlington Building Society, said: “Woodland View is a small development in Darlington built by Tees Valley housing association using government money.
“We’ve worked closely with Tees Valley to come up with a product where we can lend up to 95% LTV but only take 75% of the risk. Tees Valley has placed a summon deposit to act as a guarantee, if you like.”
Darlington is offering a rate of 3.99% on the mortgage, which is available exclusively via national broker Foster Denovo. The mortgage is available to all purchasers, not just first-time buyers.
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The building society said it has been working on the scheme for over a year and first launched it a few weeks ago.
“This is an experimental scheme and we’ll analyse the take up over the next few weeks. We’re just trialling it in one area of Darlington and we’ll just see where it takes us from there. We’re hoping we’ll get at least a half a dozen mortgage applications over the next two months.”