View more on these topics

Advantage Flexishare loan to take market by storm

Advantage is poised to take the market by storm with the launch of its Flexishare product in July, which allows first-time buyers to borrow up to 6 x their income, split between a conventional mortgage and residential ownership loan.

The innovative move comes just six months after Advantage was bought by US giant Morgan Stanley.

The product will be available on Advantage’s adv-elect website from mid-July and is designed to increase the buying power of first-time buyers, families seeking larger houses and key workers.

Prime borrowers will need to have a minimum 5% deposit but will be able to have between 15% and 35% of the property value tied into a residential ownership loan.

The loan will be fixed at a rate of under 3% for the term and funded by Advantage, which will share in the potential increase or decrease in properties’ future value.

The Flexishare product has already received rave reviews from the industry.

Ray Boulger, senior technical manager at John Charcol, says it’s good to see a lender entering the market in such an innovative way.

He says: “This is encouraging and will give those normally fro- zen out of the market the opportunity to buy property. It’s unusual for a lender to share in any loss as well as any gain.

“Key workers who don’t fit the government’s HomeBuy initiative will be able to qualify for this and it will give them more freedom.”

But Boulger stresses that this product is not for those who can already get a high street loan.

He adds: “If this product is successful other lenders will start to look at offering deals like it and try to achieve the same objective in a different way.”

John Wriglesworth, economist and PR guru, believes the deal will help many make the move from renting to buying.

He says: “There are over one million potential first-time buyers still renting and unable to buy.”

But he also believes it is still responsible to lend 6 x times a person’s income because of the structure of the product.

Keith Dearling, managing director of Advantage, says: “We’ve run several focus groups and believe this product has the potential to change people’s lives.”

Recommended

Advantage reminds brokers to claim free holiday voucher

Mortgage brokers can claim a free Airtours hoilday accomodation voucher and be in with the chance of winning a week for two people at a luxury Spa in Barbados, courtesy of Advantage.Mortgage intermediaries logging on to www.adv-elect.co.uk can enter the Sandy Lane Free Prize Draw simply by entering their details. To claim their free Airtours […]

Nationwide increases rates on fixed rate mortgages

Nationwide has increased the rates on its range of fixed rate mortgages. The new rates are available from Wednesday June 28 2006.The rates are as follows: * Two-year fixed rate (with 399 fee) available from: 4.98% * Two-year fixed rate (with 699 fee) available from: 4.79% * Three-year fixed rate (with 399 fee) available from: […]

Compensation scheme must be divided more fairly says AIFA

Chris Cummings, director general of the Association of Independent Financial Advisers says the Financial Services Compensation Scheme is a “vital regulatory safety net” but the costs must be divided more fairly in order to “maintain the industry’s confience in the scheme”. Cummings says: This year, the IFA sector will be billed for 47.5m up from […]

Brokers told to get into sub-prime

The evolution of the sub-prime market over the past decade means the sector has never been more accessible to brokers, says Guy Batchelor, sales and marketing director at Platform. Speaking at the Mortgage Summit in Jerez, he told delegates that brokers should embrace it and its earning potential.

Nigeria cover image - thumbnail

White paper — Nigeria International Insights

Jelf Employee Benefits closely examines healthcare provision and challenges within Nigeria. This will be of particular interest to HR decision makers with employees based in Nigeria, and assesses the environment, risks, facilities and safeguards that are relevant to organisations that are actively deploying expatriate staff in this location.

Newsletter

News and expert analysis straight to your inbox

Sign up