The shared ownership, intermediary semi-exclusive partnership will enable Skipton to test the success of the product and use broker feedback to refine its proposition before rolling it out to the whole of market.
Its range offers products for new build houses and flats to 90% LTV, providing the borrower’s share is 25%-75% of the property value.
Higher proc fee
Skipton has increased its proc fee solely for shared ownership to 0.45% in recognition of the extra work involved in these cases, against 0.4% across the rest of its residential range.
Kris Brewster, Skipton’s head of products, said: “Skipton is offering an increased proc fee on shared ownership cases to recognise the extra work required by a broker in order to pre-qualify the applicant for the housing association.”
Brewster added that case sizes were generally lower as well because borrowers were only buying a portion of the property.
Skipton’s range of shared ownership purchase products include two-year fixes at 2.19% for a 90% LTV with £995 fee, and fee-free 2.68% to 90% LTV, with five-year fixes at 2.65% to 90% LTV.
Brewster added: “Before we launch the product to the whole of market, we wanted to pilot the product first and gather broker feedback, so when we do a full roll out , we are able to ensure it is tailored to all of our brokers’ needs.”
Craig Hall, new build manager at Legal & General Mortgage Club, said: “Despite the success of the government scheme many potential home buyers are still unaware of the scheme, and as an industry there is work to be done in promoting its benefits.
“We have been delighted to assist the Skipton Building Society in developing its proposition and for choosing us as one of its key distributors.”