Housing provider Affinity Sutton joins with Santander on mortgage product
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A new mortgage product has been launched - designed to help
first-time buyers get a foot on the property ladder.
Affordable housing provider Affinity Sutton has joined forces
with leading High Street lender Santander to launch the exclusive
shared ownership scheme.
In a first for the sector,
Affinity Sutton is partnering with Santander in the pilot
scheme which allows approved applicants to borrow up to 95 per cent
Loan to Value (LTV) on between a 25 and 75 per cent share of the
property.
As this is a pilot, the range is only initially available in
branches across London and the South East.
The branches are linked exclusively with Affinity Sutton
developments and will offer customers who have been approved by
Affinity Sutton, a customer of Santander Corporate Banking, the
opportunity to discuss their requirements face-to-face with a
Santander mortgage advisor.
Under the scheme, borrowers will pay a mortgage on their share
of the property and subsidised rent on the share they don't own to
Affinity Sutton - as the Registered Provider (RPs).
Until now, shared owners have had to find a greater level of
deposit and many have only been able to purchase the minimum share
(25%).
But by reducing the deposit required, they will be able to buy
the share that they can afford and will therefore also pay less
rent to their Registered Provider.
Shared owners buying under the scheme will need on average a
£3,600 deposit as well as approximately £3,500 purchasing
costs.
Mark Washer, Group Finance Director, for Affinity Sutton,
said: "This partnership builds on our already
strong relationship with Santander and we are delighted to be
leading the sector in helping first time buyers with a new mortgage
product. This plugs a large gap in the market and offers purchasers
of our shared ownership properties a real benefit."
Phil Cliff, Mortgage Director for Santander commented: "The
Santander/Affinity Sutton pilot partnership once again signifies
our commitment to helping rejuvenate the UK housing market.
"This initiative will help first time buyers get a foot on the
property ladder and play a vital role in supporting the creation of
more affordable housing across London and the South East. The new
shared ownership project has been designed specifically to suit the
needs of Affinity Sutton’s customers.
â€In the first quarter of 2010, we lent one in five mortgages
increasing our share of the mortgage market and proving to
borrowers that we are a strong and consistent lender, focused on
offering customers a variety of highly competitive and value for
money products. In recent months, we have focused particularly on
first time buyers launching special products and increasing the
maximum LTV on new build properties.
"The addition of a shared ownership pilot is very exciting and
underlines our dedication to helping first time buyers."
Jamie Ratcliff, Head of intermediate markets at the Homes and
Communities Agency said: "As the government's
national housing and regeneration agency, we welcome this
innovative approach to improve the availability of mortgage lending
to first time buyers, particularly as it involves no additional
public funding.
"This pilot scheme complements our own work, aimed at building
strong relationships with retail mortgage lenders, which is already
having positive effects in terms of attracting new lenders and
making shared ownership lending more competitive."
For more information on the Shared Ownership mortgage
from Santander, borrowers should visit one of the 43 participating
Santander branches. Customers will firstly need to ensure they are
eligible for an Affinity Sutton property.
Tuesday, July 27 2010
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