"We are delighted to be the first mainstream lender to launch a custom build proposition, as we want to offer more choice in an underserved section of the market"
Custom build offers plots of land with outline planning permission and services already installed where customers can determine the design and layout of their new home.
New custom build three-year tracker rates are available from 4.79% at 80% LTV and 4.99% at 85% LTV, both with a £1,995 product fee.
Custom build borrowers can then transfer to a new product, with no ERCs, at a time that suits them following the completion of their new home. Additionally, Virgin Money does not pass on the charge for indemnity insurance, saving customers £1,300 on average in upfront costs.
Virgin Money custom build loans are available to all intermediaries, with loans submitted via BuildLoan.
Virgin Money has also launched a brand new range of shared ownership mortgages, allowing borrowers to buy an initial share of between 25% and 75% of a home, and pay an affordable rent on the remaining share owned by a housing association.
Two-year fixed rate shared ownership products are available from 1.84% up to 85% LTV with a £995 product fee. Fee-free rates are also available from 2.44% up to 85% LTV and 3.69% up to 90% LTV.
Five-year fixed rates start up to 85% LTV are available at 2.34% with a £995 product fee or 2.89% fee-free, rising to 4.29% at 90% LTV.
All shared ownership products also offer £300 cashback. Products will initially be available through specialist intermediary partners for properties in London, the South East and the South West, with the intention to broaden availability over time.
Virgin Money will also donate £100 to Crisis, the national charity for homeless people, for every custom build and shared ownership mortgage completion. Virgin Money’s partners BuildLoan, Countrywide and Eversheds will also make additional donations for every custom build completion through Virgin Money, taking the total donation to £150 per loan.
Peter Rogerson, Virgin Money’s Director of Mortgages, said: “Virgin Money is committed to getting Britain building and helping more people achieve their dream of home ownership. We are delighted to be the first mainstream lender to launch a custom build proposition, as we want to offer more choice in an underserved section of the market that has huge growth potential. Our new shared ownership range will support customers with a more affordable route into home ownership, giving people access to property who might otherwise be excluded.”
Alok Sharma, Housing and Planning Minister, added: “This Government is determined to make housing more affordable, increase housing supply and help more people get onto the housing ladder. Shared ownership and custom build housing can play a crucial role in this, helping to deliver the homes people want and supporting first time buyers. That is why it’s great to see Virgin Money launching a new range of mortgage products to support aspiring custom builders design their dream home and those wishing to buy through shared ownership.
“We’ve already helped hundreds of thousands of people become homeowners through government-backed schemes and want even more people to benefit in the future.”
