Preferred Mortgages’ successful shared ownership product, the only one of its kind in the non-conforming market, will provide a new remortgage facility.
In 2001 alone, there were around 78,000 shared ownership properties in England. More recently, a Council of Mortgage Lenders (CML) report1 found that low cost ownership schemes such as shared ownership overwhelmingly provide more cost-effective use of Government funding than subsidising social renting. As the only lender providing shared ownership loans for non-conforming customers, Preferred Mortgages is providing valuable assistance to those people wanting to purchase affordable housing in the community.
Simon Biddle, Marketing Development Manager at Preferred Mortgages commented: “The early success of our shared ownership product not only demonstrates both the real need for this product across the non-conforming market and how Preferred is assisting the government in meeting its objective to provide a greater choice of low cost home ownership programmes."
“Our improved product will build on our success so far. The area of low-cost home ownership is an exciting one and a very important one in the current housing market. This further underlines Preferred Mortgages’ supportive approach to such initiatives and our responsible approach to lending.”
Following its successful launch into the non-conforming market in February 2002, Preferred Mortgages has seen sales grow substantially. The improved shared ownership product will include the following features:
1. A new remortgage facility - Ideal for customers who currently have their mortgage with a high street lender but whose present financial circumstances mean they cannot remortgage with their existing lender.
2. More flexible share availability – on purchases, offering up to an 85% advance on a share between 50% up to 75%.
The Preferred Mortgages shared ownership product will only be available via selected mortgage intermediaries who have knowledge and understanding of this niche market.
To aid intermediaries with their shared ownership marketing Preferred Mortgages has published ‘An Intermediaries Guide to Shared Ownership’ booklet.
