Ipswich Building Society has launched two high loan-to-value shared ownership products and reduced the minimum accepted share from 40% to 25%.
The products for purchase and remortgage are a 95% LTV 2-year discount at 3.39% (changing to 3.64% on 2 January) and a 95% LTV 2-year fix at 3.89%, both with a £199 application fee and no completion fee.
The minimum share was increased to help cater for buyers with a smaller deposit. When the share is less than 40% there is a minimum loan size of £100,000.
Another change is new and existing shared ownership borrowers can now ‘staircase’ – increase their borrowing by upping their share of the property.
Richard Norrington, chief executive of Ipswich Building Society, said “We are excited to enhance our shared ownership offering to a currently underserved section of the market.
“Our new shared ownership remortgage product is a diverse addition to the mortgage marketplace and provides an option to existing borrowers who are looking to change their shared ownership deal.
“Reducing the minimum share on our wider shared ownership range will also help make this avenue more accessible for borrowers currently finding it difficult to get on the property ladder.
“These new products, combined with our personal approach to underwriting, allow us to offer borrowers more choice while retaining a diligent approach to lending.”
The new products come have a maximum £350,000 loan amount and property valuation up to £1m.
There is also fee assisted legals for remortgage applicants.
For the 2 year discount rate product, overpayments made in excess of 50% would incur a 1% early repayment charge calculated on the total overpayment amount.
For the other product there is a 3% early repayment charge.