The new products cater to shared ownership applicants and later life lending customers
Buckinghamshire Building Society has launched two new specialist five-year fixed rate products – one for shared ownership applicants and the second as part of its later life lending range.
The five-year fixed rate shared ownership product is available without a product fee for both purchase and remortgage cases for properties across England and Wales. It is available for share purchase of 25% to 75%, for loans between £50,000 and £500,000, with a maximum loan to share of 95%.
The five-year fixed rate later life lending offering is available for remortgage cases only for properties across England and Wales. It is available for loans between £50,000 and £300,000, with a maximum loan-to-value of 60% and a maximum term of 40 years. This is also the first product that has been launched in conjunction with the lender’s new desktop valuation option.
Read more: Buckinghamshire Building Society expands mortgage team.
“Following our re-entry into the shared ownership market last month, we received multiple enquiries from brokers looking for a fixed rate option,” Claire Askham (pictured), head of mortgage sales at Buckinghamshire Building Society, said. “It’s completely understandable, the majority of applicants looking at shared ownership are first-time buyers who want to have the certainty of a fixed monthly payment which allows them to budget in a changeable market.
“As a mutual, a key part of what we do is to support low deposit buyers and help them achieve their dreams of property ownership. With the recent closure of the Help to Buy scheme, improving our shared ownership offering, along with our existing Family Assist and JBSP product range, opens the door for more purchasers to achieve their goals.
“Similarly, when looking at our later life lending range we could see the real need for a longer-term fixed deal, so we worked with our credit risk team to get one in place.”
Askham noted that discounted rate products have been leading the way, something that was not expected a year ago.
“Despite that, as much as brokers and their clients are more accepting of these variable rate products now, there’ll always be a section of applicants who require a fixed option, so it’s important we’re offering that choice wherever we can,” she said.
