The Skipton Building Society is entering the shared ownership mortgage market with an intermediary semi-exclusive product in partnership with three of its key distributors, Legal & General, Connells and the Yorkshire Housing Association.
The mutual says the intermediary semi-exclusive partnership will allow it to test the success of the product and act upon broker feedback before rolling it out to the whole of market.
It offer 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.
The Skipton is also introducing an increased proc fee for shared ownership, which is 0.45% versus a non-shared ownership residential of 0.40%, in recognition of the extra time it takes brokers to process these cases because of their involvement in the pre-qualification for the housing association.
Kris Brewster (pictured), the 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’s range of shared ownership purchase products include two-year fixes at 2.19% to 90% LTV with £995 fee, and fee free 2.68% to 90% LTV, and five-year fixes 2.65 to 90% LTV with £995 fee, and fee free 2.94% to 90% LTV.
For those wishing to remortgage on shared ownership, the range includes a fee free two-year fix at 2.84% to 90% LTV and a fee free five-year fix at 2.98% to 90% LTV and there is a choice of either £500 cashback or free standard legals.
The products 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.
Brewster added: “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.
“At Skipton Intermediaries 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.”
Craig Hall, new build manager at Legal & General Mortgage Club, added: “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.”
