Legal & General Mortgage Club has confirmed an exclusive shared ownership mortgage with Melton Building Society.
The deal is a four-year fixed rate at 3.99%, available up to 95% LTV and a maximum loan size of £150,000.
Craig Hall, new build manager at L&G, said that shared ownership is still “largely underused by customers” and called on the industry to do more to turn this around.
He continued: “As shared ownership progresses, we are likely to see an increase in product innovation from lenders.”
West Brom introduces ‘assisted mortgage’
West Brom Building Society has launched an ‘assisted mortgage’, where income from a nominated sponsor supports the repayment costs.
The lender emphasised it is not a joint mortgage, as only the main applicant is registered as the owner of the property. It said it had been designed for borrowers able to put down a suitable deposit, but who cannot afford the monthly repayments without help.
Rates start at 2.34% for a two-year fix at up to 90% LTV, with a £499 completion fee. A fee-free option, with £500 cashback, is available at 2.69% also over two years. The maximum loan size is £500,000.
David Taylor, head of products at the mutual, said the lender wanted to deliver a mortgage that helped borrowers whose current income was limiting their ability to buy the property they wanted.
He continued: “Rather than delay their plans, we can consider allowing them to seek assistance from someone they have a close relationship with, such as a family member, who becomes their sponsor. By combining incomes, the applicant becomes better positioned to qualify for a loan.
“Since they are joint borrowers, both parties are liable for the repayments, but only the applicant takes actual ownership of the property. Over time and as their personal earnings increase, we would expect the applicant to eventually assume full responsibility for the mortgage and the sponsor to step away.”
TMA exclusive with Leek
Leek United has launched an exclusive two-year fixed rate buy-to-let product with TMA Club.
The deal comes with a rate of 1.84% and is available up to 75% LTV, with application fees of £100.
Clare Beardmore, head of mortgage sales at Leek United Building Society, pointed out this rate was 0.05% lower than the comparative mainstream deal in its range.
She added: “Our reputation is built on a commitment to providing the highest standards of personal service and we look forward to working directly with TMA’s advisers to provide them and their customers with the high-quality products and service they continually deliver.”
Yorkshire first-time buyers
Yorkshire has revamped its first-time buyer range, introducing £1,000 cashback as well as some fee-free deals.
The products include a two-year fixed rate available up to 90% LTV at 2.29% and a five-year fixed rate available up to 95% LTV at 4.34%.
Janice Barber, mortgage manager at the mutual, said the range had been reworked following the society’s research into the difficulties faced by first-time buyers, particularly the fact that many are held back from buying because of the upfront costs they face.