The products are aimed at homebuyers with smaller deposits
Hanley Economic and Melton Building Societies have each launched new shared ownership mortgage products, looking to support homebuyers with smaller deposits.
Hanley Economic has launched a fee-free, two-year fixed rate shared ownership mortgage with 5.35% interest rate.
Available for up to 95% loan-to-value (LTV), the new product allows borrowers for both purchases and remortgages to access the shared ownership scheme with as little as a 5% deposit. It has no application or arrangement fees, and a free standard valuation is included.
Loan amounts range from £30,000 to £500,000, and the product is available for properties across England and Wales, including new builds and flats up to 10 storeys.
The mutual said each application will be assessed individually by its in-house underwriting team, with no credit scoring involved. The mortgage is available through the building society’s branch network and select intermediary channels.
“Shared ownership offers an accessible and practical route to homeownership,” said David Lownds (pictured), head of products and marketing at Hanley Economic Building Society. “However, the expertise of intermediaries and the experience of lenders who are specialists in this space are vital in guiding borrowers through the process and in ensuring they make the most informed decisions possible.
“Although available for both purchases and remortgages, this product is expected to primarily appeal to first-time buyers with smaller deposits who are keen to enter the property market. We anticipate that it will gain significant traction as we move into the final weeks of 2024.”
Meanwhile, Melton Building Society is launching a five-year fixed rate shared ownership mortgage exclusively for buyers in the East Midlands, with a reduced minimum loan amount of £50,000 to cater to local needs.
The product offers a 5% interest rate, up to 95% LTV, with no application or completion fees, and includes £500 cashback for applicants purchasing in Leicestershire, Lincolnshire, Northamptonshire, Nottinghamshire, Rutland, and Derbyshire.
“Shared ownership properties make home ownership accessible to many who may find a higher deposit or affordability challenging, so it’s important for us as mutual building society to offer a product range that supports shared ownership applicants,” said Dan Atkinson (pictured right), head of intermediaries at Melton Building Society. “We are delighted to offer this East Midlands exclusive product to the market.”
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