The Shared Ownership Mortgage is available on new build houses and flats for borrowers who would like to purchase up to a 95% share.
The product, which is available via brokers, has an interest rate fixed for five years. Although Leek has not published the interest rate it said the product offered ‘affordable monthly repayments’.
Shared Ownership is a government scheme which allows buyers to purchase a percentage of a property and rent the rest. It means individuals or couples need only find a deposit for the proportion of the property they are buying and the mortgage value is also, therefore, reduced.
For this reason it takes away much of the affordability challenges faced by buyers, especially those taking their first step on the property ladder.
It’s available to buyers with household incomes of below £80k in England (£90k in London). Buyers have the option later on to ‘staircase’ and purchase more shares on their property.
Leek said shared ownership not only offered a significant reduction in the the upfront costs buyers faced, but also provided a viable pathway towards full homeownership.
Nikki Warren-Dean, head of intermediaries at Leek Building Society, said: “At Leek Building Society, we recognise the challenges many individuals encounter in realising their dream of home ownership, especially in today’s market.
“Our Shared Ownership Mortgage is there to lend a helping hand to those struggling to secure substantial deposits and first-time buyers seeking a foothold on the property ladder.”
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