Buckinghamshire Building Society is launching a couple of new mortgage products, both of which are specialist fixed rate five-year loans, that will be part of its later life and shared ownership ranges.
The loan that is for those looking to buy a home through a shared ownership scheme will only be accessible to applicants in that situation. The second will be available to anyone seeking a mortgage later in life and applicants will be able to get their chosen property valued using publicly available data. The thinking behind that is to make the process of completion quicker and lower the costs involved.
There are also savings to be had with the shared ownership mortgage, as both remortgage and purchase applicants in Wales and England will be able to get it minus the standard product fee. Share purchase deals of between 25% and 75% with 95% maximum loan-to-share (LTS) will be eligible for it. The top mortgage amount is £500,000.
For later life borrowers, the highest mortgage available will be £300,000 with a 40-year maximum repayment term. The loan-to-value (LTV) max is 60%.
Speaking to Financial Reporter, Claire Askham from Buckinghamshire BS said that advisors had urged them to offer a fixed rate mortgage, adding:
“It’s completely understandable, the majority of applicants looking at shared ownership are first time buyers who want to have the certainty of a fixed monthly payment which allows them to budget in a changeable market.”
Advisors with the CeMAP qualification will consider this good news for those buying a first home.