The Mansfield Building Society has launched a discounted variable rate shared ownership mortgage with no Early Repayment Charges (ERCs).
The mortgage offers borrowers access to the mutual’s cheapest variable rate shared ownership mortgage with the opportunity to switch to a fixed rate at any time.
The product is available for purchase, remortgage and staircasing on properties across England and Wales with the following features:
- 2 year discounted rate
- 3.49% variable pay rate (2.10% below SVR)
- Up to 95% of Share, 75% LTV
- £199 Application Fee, no Completion Fee
- Free basic valuation
- Borrower able to switch to a fixed rate loyalty product at any time without penalty
Mike Taylor (pictured), head of products at The Mansfield, said the new product was targeted at borrowers that wanted to take advantage of lower interest rates, but also want the added security of being able to move onto a fixed rate if either their circumstances, or the interest rate outlook, changes.
He said: “In the current low interest rate environment it’s only natural that borrowers consider the security of fixed repayments. However, borrowers should also be encouraged, where budgets permit, to consider alternative product options available. With our new ERC free discounted variable rate mortgage, shared ownership borrowers can access a competitive initial pay rate with the added benefit that they can opt to fix at any time, should they wish to do so.
“As a mutual building society, we want to help aspiring home owners as much as possible and we’re always keen to develop product features that support this belief. We have worked closely with shared ownership mortgage specialists to understand the needs of their customers and by offering this feature, borrowers have the freedom and flexibility to choose the right mortgage both now and in the future.”