Shared ownership mortgage launched by Teachers Building Society
Teachers Building Society has launched a new three-year fixed rate shared ownership mortgage at 4.29%.
The deal is available to teachers and education professionals in England and Wales, as well as residents of Dorset, Hampshire and Wiltshire.
It is available up to 95% LTV, so borrowers only need to find a 5% deposit, and comes with a £99 application fee.
How does it work?
Under shared ownership the purchaser buys a portion of the property, usually between 25% and 50% and pays a rent charge for the remaining portion, often to a housing association. As and when they have the funds they can buy further portions of the home until they potentially take full ownership, or sell the property.
Andy Yates, business development manager at Teachers Building Society, said: “The Shared Ownership scheme provides an affordable way for people to step onto the property ladder, especially first-time buyers in a market where house prices continue to rise and finances are squeezed.
“This new fixed rate mortgage is designed to meet the needs of buyers seeking the reassurance of fixed payments – this, along with our ability to lend up to 95% LTV of the share purchase and with no arrangement fee, provides an extra helping hand for those looking to purchase their own home via this scheme.”
The Teachers deal is offered to remortgagors as well as purchasers.