The complex right-to-buy market now has a simple, streamlined mortgage solution. From March, Money Partners’ Origin mortgages and Axis loans range of products have been extended to suit right-to-buy purchasers in England and Scotland and approved lender status for Wales is pending.
In introducing the new service, Money Partners has added a greater degree of flexibility and choice for right-to-buy purchasers. The key features of the products are: -
- right-to-buy purchasers benefit from the same terms and conditions as other Money Partners borrowers
- in the pre-emption period the discount is ignored
- lending is assessed on the current open market value
- there are no higher lending charges
The full range of standard variable, fixed and discount Origin mortgage options are available. Completion costs of £500 include all legal and remortgage charges.
By extending our existing range of products and ignoring any outstanding pre-emption discount, Money Partners has introduced a new degree of flexibility and choice. The maximum loan-to-value is 85% on houses valued over £60,000 and 70% on flats valued at over £100,000, giving intermediaries and brokers the opportunity to help more customers to exercise their right to buy.
“The Money Partners product demands the same income and reference criteria of many of the other right-to-buy products currently available, but outperforms competitors by offering higher LTVs and a better, quicker service,” commented Karl Griggs of Select Finance.
“We’re extremely pleased that Money Partners has entered the right to buy market,” added Chris Ollerenshaw of the Black and White Group. “The lending criteria are good for our business; the product portfolio is comprehensive and readily available and the rates are excellent. The LTV ratios and the fact that flats are included will mean that the product will be available to the majority of our clients. A particularly strong aspect of the product is that it ignores the pre-emption period. We believe that this offer will open up business channels for us.”
“There are two schools of thought in the wake of the changes introduced on 18 January,” said Money Partners sales and marketing director Adam Henry. “One is that because the Government is making it more difficult for local authority tenants to exercise their right to buy by extending the qualification period of secure public sector tenancy from three to five years, there may be a decrease in take up. The other, and the one to which I subscribe, is that many secure tenants will choose to exercise their right to buy before more restrictions are introduced. With some three million properties still owned by local authorities, we believe that this is a sector which is set to grow.
“By extending a broadly similar version of our standard product range to right-to-buy customers, we want to offer more choice, less confusion, a more flexible approach and ultimately a better service.”
