"With Help to Buy due to end in 2023, alternative homeownership schemes like shared ownership will play an increasingly important role in helping many people onto the property ladder"
Members of Legal & General Mortgage Club can now access two exclusive shared ownership mortgages through Buckinghamshire Building Society. The products range between 25% and 75% LTV, with a maximum loan-to-share of 95%. They are priced at 3.30% (subject to a three-year discount) and 3.79% (fixed until 2024) respectively and have a £350 arrangement fee. Properties must be worth a minimum of £75,000 and the maximum loan size is £500,000. The mortgages will be available on homes in England and Wales.
Applicants of the shared ownership products are manually underwritten by the lender and are not subject to credit scoring checks. Instead, Buckinghamshire Building Society completes a credit search which allows it to assess cases on individual merit and avoid the need for maximum age limits.
The products will be available through Legal & General Mortgage Club’s SmartrFit tool, which combines product sourcing and affordability calculations into a single function. Currently, SmartrFit is free to use for any broker whether a member of the Club or not.
An exclusive five-year fixed rate buy-to-let mortgage from West One Loans is also now available to members. The mortgage offers a rate of 3.38% and is available up to 75% LTV. It is subject to a reduced arrangement fee of 1.75%. The lender will consider homes worth up to £400,000 in value with a maximum loan value of £300,000.
The rental stress is calculated at pay rate, based on 125% coverage for limited companies and lower rate taxpayers. A higher 140% coverage is required for higher rate taxpayers. The product is available via West One Loans’ standard range and is open to all landlords, with an unlimited portfolio size. The mortgage can be used to finance houses and flats for standard AST rentals, and it is available for purchase and remortgage cases.
Danny Belton, head of lender relationships at L&G Mortgage Club, said: “With Help to Buy due to end in 2023, alternative homeownership schemes like shared ownership will play an increasingly important role in helping many people onto the property ladder in Britain. We’re pleased to be responding to this growing need for alternative solutions with these two new shared ownership mortgages for our members via Buckinghamshire Building Society. The lender’s manual underwriting approach and highly competitive rates will help to provide a valuable additional choice to advisers placing shared ownership cases.
“At the same time, we’re also boosting the number of five-year fixed rate mortgages available through Legal & General Mortgage Club through an exclusive with West One Loans. This five-year fixed rate product is one of the most price competitive deals of its type available through the lender and will come as welcome news to our members.”
Claire Askham, key account manager at Buckinghamshire BS, commented: “We are delighted to support Legal & General Mortgage Club members by being able to offer a shared ownership exclusive. Shared ownership is helping first-time buyers to achieve the home ownership dream and we are delighted to be able to be part of this. At Buckinghamshire Building Society we are committed to supporting customers with a variety of borrowing needs and our flexible and bespoke underwriting approach means we can help brokers find the right solution for their clients.”
Andrew Ferguson, managing director West One Loans, added: “We are delighted to be working in partnership with Legal and General Mortgage Club to bring this product to market. It provides Club members with a competitive option for supporting landlord clients and when considered alongside our ability to get the deal done efficiently and within strong service timescales, we are sure this will prove a popular option and support our growth with Legal & General as a key partner.”
