Skipton Building Society is entering the shared ownership mortgage market with an intermediary semi-exclusive product, which comes with a higher than standard procuration fee.
The new product will be available from tomorrow, 5 June, through Skipton’s distributors Legal & General, Connells and the Yorkshire Housing Association.
The lender intends to test the success of the product and gather broker feedback before rolling it out to the whole of the market and offering products for all shared ownership, including new build houses and flats to 90 per cent LTV, providing the borrower’s share is 25 to 75 per cent of the property value.
Skipton will offer a 0.45 per cent proc fee on the shared ownership product, higher than the 0.40 per cent offered on other residential deals, which it says is in recognition of the extra time it takes brokers to process these cases because of their involvement in the pre-qualification for the housing association.
Skipton head of products Kris Brewster says a further reason for the higher proc fee is that “case sizes would normally be lower as only part of the property, rather than the whole, is being purchased.”
Skipton’s range of shared ownership purchase products include 2-year fixes at 2.19 per cent to 90 per cent LTV with £995 fee, and fee free 2.68 per cent to 90 per cent LTV. It also offer 5-year fixes at 2.65 per cent to 90 per cent LTV with £995 fee, and fee free 2.94 per cent deals to 90 per cent LTV.
A remortgage range is also available.
The products can be used for new build houses and flats to 90 per cent LTV, with minimum loans either £25,000 or £85,000 depending on the product chosen.