The two-year deal is fixed at 6.89 per cent until 1 January 2009 and is available up to 100 per cent of the share of the loan.
With affordability still a major problem as house prices continue to rise, c2 said it had provided a mortgage product that could help a significant number of people.
Justin Caffrey, managing director at c2-financial, said: “This product is targeted at those wanting a shared ownership mortgage who have suffered with adverse credit. It is one of the few mortgages that will give them the chance to get back on the housing ladder at a time when house prices have reached record highs. Also, with expected rises in the Bank Base Rate (BBR), the product comes with the comfort of mortgage payment certainty during its two-year term.”
The product has an arrangement fee of £495 but comes with a free valuation, no application fee and no higher lending charges (HLC).
There is an early repayment charge (ERC) of 6 per cent during the two-year fixed term and has a 0.55 per cent intermediary procuration fee.
Jason Richardson, director at YooToo Financial Services, believed there were not many products like this available in the market.
“It’s good to have up to 100 per cent as these are few and far between. Some products do go up to 100 per cent, but this is the only one I can think of where you don’t have to have a squeaky clean credit record. This is a niche area which is becoming more popular as people struggle to get into the market.
“At a time when people are taking out more credit on credit and store cards and loans and suffering more defaults, this will help people get into a home without waiting years for their credit rating to clear or to build up a big deposit.”
