The range includes a one-year discount product, starting from 6.39 per cent up to 95 per cent loan-to-value (LTV) and 6.59 per cent up to 100 per cent LTV, and a two-year and three-year fixed rate at 6.89 per cent.
Sian Brown, national sales manager at Trustguard, said: “This is a competitive and versatile scheme for the shared ownership sector. It will appeal to brokers with clients who are key workers, or who are eligible for shared ownership. We are expecting a lot of interest.”
The products are available between near-prime and extra light, with two missed mortgage payments in the last 12 months allowed and one in the last three. Up to £3,000 of cleared or uncleared CCJs and discharged bankruptcies of up to 12 months are considered.
There are no higher lending charges but the completion fee of £495 can be added to the loan.
An early repayment charge (ERC) of 6 per cent is imposed on the fixed rates and the one-year discount has sliding ERCs of 6/5/4 per cent over the first three years of the mortgage.
Mike Fry, director at Halton Insurance Services, said: “The fixed rates will help, especially those who have trouble managing money. Anything which is near-prime is good as many people were caught out by things like the technology boom and had the rug pulled from under them, so need a little bit of help.”
