Pink Home Loans has made improvements to the shared ownership product, in association with Mutual One, which is funded by Ipswich.
The product offers a competitive three-year discount product with no upfront fees and the arrangement fee has now been reduced to 150, which can be added to the loan on completion. Flexibility is built into this product as clients can reduce their mortgage balance by up to 50% of the original amount without penalty.
David Copland, marketing director at Pink, says: The enhancement to this product will certainly benefit individuals wishing to take their first step onto the property ladder. The product offers no upfront fees, requires no deposit and offers a competitive rate.
The product will also include an underlying pay rate at Ipswichs SVR which is currently 6.40% and an initial pay rate of 5.65%. It will have free valuation and an early repayment charge of 3% of the loan in the first three years. The balance can be reduced by 50% of the original amount without penalty.
The net broker fee is 0.3% and the maximum LTV for shared ownership is 100% up to 250,000, and for home buyers the LTV is 75% up to 250,000. The arrangement fee of 150 can be added to the loan.