The Cheshire’s fixed rate mortgage follows on from the Government’s call to get more “priority first time buyers” on to the property ladder, offering a rate of 6.80% for the first three years, moving to the standard variable rate for the rest of the mortgage term. Not only that, but there is no arrangement fee or standard valuation fee to pay as the Cheshire covers them both. The overall cost for comparison is 7.3% APR.
Under the Government’s HomeBuy scheme, first time buyers earning less than £60,000 can purchase a percentage of a property with the remainder belonging to an organisation, typically a housing association, to which rent is paid.
James Taylor, mortgage product manager for Cheshire Building Society, said: “Shared ownership is a great alternative, allowing individuals a helping hand to get on the property ladder in a gradual way and still benefit from any increase in the value of the property, with the option of purchasing a larger proportion of the property in the future.”
Loans are available up to 100% of a share in the property and 75% of the property value (terms and conditions apply). A booking fee of £100 is payable on application and will be refunded within 10 days of completion.
In the event of the mortgage being repaid, in full or in part during the fixed rate period, an early repayment charge applies of 3% in the first year, 2% in the second year and 1% during the remaining fixed rate period. The charge will be made on the original loan amount or, in the case of part repayment, the amount of capital repaid.
