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New high street lender offers shared ownership mortgages
A major high street lender has begun offering mortgages on shared ownership products, as the product continues to become a more mainstream tenure in the UK’s housing market.
Virgin Money, which has more than four million customers following its acquisition of part of the stricken Northern Rock chain in 2012, announced the launch of the product today.
Currently, only a minority of high street lenders offer mortgages on shared ownership products, which has been seen as a potential barrier to the development of the tenure despite political backing.
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Research in January revealed 80 housing associations have 25,000 shared ownership units under construction, compared to an average of 6,000 a year over the last 30 years.
The new shared ownership mortgages from Virgin are offered at 85% and 90% loan-to-value and will initially be available through specialist intermediary partners for properties in London, the South East and the South West, with the intention to broaden availability over time.
Peter Rogerson, director of mortgages at Virgin Money, said: “Our new shared ownership range will support customers with a more affordable route into homeownership, giving people access to property who might otherwise be excluded.”
Amy Nettleton, assistant development director for sales and marketing at Aster Group, said: “Alternatives like shared ownership are now increasingly vital to meeting the UK’s housing needs.”
The lender also launched new products for those seeking to carry out custom build.