RBS IP launches shared equity mortgages

By Nia Williams

06 Jul 2009

The three fixed rate products have been designed specifically for applicants purchasing a property using one of the Government’s shared equity schemes to raise a deposit.

The new products are all fixed rates offering a choice of maximum LTV levels:

RBS 3 year 70% LTV at 4.59% (4.0% SVR, 4.3% APR), with a £199 fee until 31 August 2012.
RBS 3 year 80% LTV at 5.89% (4.0% SVR, 4.7% APR), with a £199 fee until 31 August 2012.
RBS 4 year 85% LTV at 6.29% (4.0% SVR, 5.0% APR), with a £199 fee until 31 August 2013.

Graham Felstead, head of sales at RBS IP, commented: “The interest shown by intermediaries in the shared equity scheme sector is definitely growing. At the RBS IP Forum event held recently in Nottingham, nearly half of the delegates said that they felt the biggest concern facing their clients was the difficulty in raising a deposit. They also told us that they viewed shared equity scheme business as the best opportunity for diversification. These new products should provide our business partners with a range that fits the needs of first time buyers buying through one of these schemes. We are committed to supporting our intermediary partners to make the most out of business opportunities offered by sectors such as this and will be working with them on other initiatives.”

Other findings from the research conducted at the RBS IP Forum found that nearly a quarter (23%) said that they definitely planned to write some shared equity business in the future, 3 in 10 (29%) said that they possibly would whilst 27% felt that they needed to find out more before making a firm decision.