Skipton Building Society is tomorrow entering the shared ownership mortgage market with an intermediary semi-exclusive product in partnership with three of its distributors, Legal & General, Connells and the Yorkshire Housing Association.
Skipton’s products, which are 2 and 5-year fixes, can be used for new build houses and flats to 90% LTV, with minimum loans either £25,000 or £85,000 depending on the product chosen.
The society is also introducing an increased proc fee for shared ownership, which is 0.45% compared to a non-shared ownership residential of 0.40%.
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.
“Also case sizes would normally be lower as only part of the property, rather than the whole, is being purchased.
“Skipton continues its commitment to build mutually strong relationships with our valued professional partners and so we’re delighted to announce the trial of our first shared ownership mortgage, with three of our key distributors.”
Brewster added: “We spend a great deal of time talking with and listening to our broker partners and regularly action upon their feedback.
“We know through regularly discussions with our key partners that there is an increasing demand for shared ownerships mortgages to help people take their first steps onto the property ladder.
“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 of the product, we are able ensure it is tailored to all of our broker’s needs.”
Skipton’s range of shared ownership purchase products include 2-year fixes at 2.19% to 90% LTV or with a fee free option at 2.68%.
There’s also 5-year fixes at 2.65% to 90% LTV with £995 fee, and a fee-free version at 2.94%.
For those wishing to remortgage on shared ownership, the range includes a fee free 2-year fix at 2.84% to 90% LTV and a fee free 5-year fix at 2.98% to 90% LTV, and there is a choice of either £500 cashbackor free standard legals.
The shared ownership, intermediary semi-exclusive partnership will enable Skipton to test the the product before rolling it out to the whole of market. It offers products for all shared ownership, including new build houses and flats to 90% LTV, providing the borrower’s share is 25%-75% of the property value.
Craig Hall, new build manager at Legal & General Mortgage Club, said: “Shared ownership provides an affordable alternative in helping customers onto the property ladder, who otherwise may have thought it was not possible.
“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 their proposition and for choosing us as one of its key distributors and as more lenders enter this space.”