Dudley BS launches remortgage for HTB and shared ownership customers

Michael Lloyd

August 5, 2019

Dudley Building Society has launched a mortgage that consolidates mortgage and rental payments from a shared ownership or government subsidy like in the case of a Help to Buy, into a single monthly payment.

Customers with these payments remortgage into Dudley’s single monthly payment where they own 100% of their property with just one mortgage.

The product, which is available up to 90% loan-to-value, has an initial 3.79% discounted rate.

Sam Ward (pictured), head of commercial at Dudley Building Society, said: “We are very proud of one of our core aspirations, which is to serve the underserved. Many people who took out Help to Buys and shared ownership/equity schemes did not really appreciate the millstone they can become.

“Our new product offers a viable remortgage alternative particularly useful for those approaching the end of the 5-year rent free period on Help to Buy loans and are looking to find a way forward. It can also be used to buy back the freehold in the case of properties sold as leaseholds.

“All of these schemes provided people with a means to get on the housing ladder which is commendable.

“However, in many cases the consequences further down the line were not considered. Our goal is to provide people with a real alternative and I am delighted we are able to offer this new product.

“We would urge advisers to look carefully at existing clients and their families, because this is a great opportunity to render a much needed service, which could help transform their relationship with property purchase.”

The 1.2% discount from the society’s variable rate is carried for the term of the mortgage, which can be up to 40 years.

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