Mortgage Next launches shared ownership mortgage

Mortgage next has launched a shared ownership discount mortgage funded by the Ipswich available via members of the Mortgage Next Network and directly authorised brokers registered with Mortgage Next Partners.

The shared ownership mortgage consists of a discount of 0.75% off the standard variable rate for three years from completion.

The mortgage comes with an early redemption charge of 3% of the loan amount if the loan is reduced by more than 50% in the discount period, free valuation, no administration fee, and a 150 completion fee.

It is available with 100% of purchase share and the loan is portable. The procuation fee is 0.40%.

Justine Tomlinson, marketing director at Mortgage Next, says: Shared ownership schemes give individuals who cant otherwise afford to buy a property the opportunity to buy a proportion of the property and pay rent to a registered landlord.

In most schemes the individual can increase the proportion of the property they own over time so that, as their circumstances change, they will have the option to increase their share of the ownership.

This product will appeal to individuals wishing to take their first step onto the property ladder, and gives the added benefit of a free valuation.