Mansfield launches 100% LTV shared ownership deal
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The building society is working with South Yorkshire Housing Association on the initiative, where buyers initially own up to a 60% share of the property.
Rent is then paid to the housing association on the remaining share, with buyers able to increase the share that they own in stages.
The housing association has a total of 5,296 properties across Yorkshire, Derbyshire, Nottinghamshire and Lincolnshire.
The applications for the products are available direct and via Mansfield’s broker subsidiary MB Simply Mortgages and applications are processed through Crucible Homes, owned by SYHA.
Nigel Quinton, chief executive of Mansfield Building Society, says: “Purchasing on a shared ownership scheme is becoming increasingly popular as the traditional means of acquiring a home has become more difficult.
"Many large new private estates need to make provision for affordable housing and funding is needed to make this work.
"Our partnership with SYHA has made this possible.”
Tony Stacey, chief executive at SYHA, says: “There is no shortage of people who want to get their foot on the housing ladder; the problem for many has been raising the deposit.
"This doesn’t mean we will be encouraging irresponsible borrowing – both the Mansfield and SYHA will check that the future financial arrangements are affordable for our shared owners.
“We hope other organisations will take up this model and that this can provide a shot in the arm to the local affordable housing market.”
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