House builder launches 95% LTV deal
Share
Housing builder Kier Homes, has launched Step One + which offers its buyers a mortgage up to 95% LTV.
The scheme works by offering potential buyers a Step One + secured loan combined with a traditional first mortgage.
It is working with UK specialist lender Step One Finance Limited - a private limited company, to offer the loan.
It provides a top-up loan for customers to buy new build homes.
Step One offers up to 15% of the purchase price on top of a first mortgage to a total LTV of 95%.
The Step One + loan is a secured loan product offered with a 10-year term, which it says is at a competitive fixed interest rate and has no early repayment charges.
Upon viewing a Kier home, potential buyers will then be referred to Kier’s nominated financial advisor.
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
Readers' comments (4)
Anonymous | 21 Jun 2011 4:25 pm
Sounds a bit like a Northern Rock Together mortgage and look what happened there. These types of product are fine until something goes wrong with the client's circumstances and/or house prices. I have come across exactly the same with shared ownership coupled with divorce and decreased prices, only option is to sell losing equity which was minimal in the first place.
Unsuitable or offensive? Report this comment
Maurice Edgington | 21 Jun 2011 4:54 pm
Wel done Kier Homes & Step One Finance. At least someone is trying to do something positive at last.
Unsuitable or offensive? Report this comment
smlaing | 21 Jun 2011 5:21 pm
If I were an FTB I'd sit it out. Time is on your side. Nothing will happen in the property game for years.......No hurry.
Unsuitable or offensive? Report this comment
Anonymous | 22 Jun 2011 6:17 pm
Sorry smlaing but what about the money being spent on renting - as long as the mortgage is on a repayment basis and the underwriting is good then the risk is minimised. If no-one kick starts the mortgage market the economy will continue to bump along the bottom!
Unsuitable or offensive? Report this comment