The mortgage arm of Richard Branson’s Virgin Group conglomerate Virgin Money, have announced that they are taking the initiative to help the ever-growing number of buyers looking at purchasing under the shared ownership scheme.
The Virgin Money brand has been lending to consumers for over 20 years now and we must admit, they are pretty good at it! A combination and attractive mortgage criteria and attractive products have meant that Virgin Money has been quite a big player in the mortgage market as an alternative to the standard NatWests and Halifaxs of the world. Adding another string to their bow, Virgin Money have announced that they are launching higher loan to values and lower mortgage rates across the board but the most interesting part for us is how this will affect shared ownership mortgages.
For anyone who isn’t aware, shared ownership is an increasingly popular way of purchasing a property in which a person or persons will buy a share of a property (normally a minimum of 25%) and will secure a mortgage on this share. The other share of the property that they do not own will be rented to the buyer by a housing association or a local council with the option to purchase 100% of the property further down the line. This is a great way for people to get on to the property ladder where they otherwise might not have been able to due to rising house prices and for people based in London for example, this may be the only way you will be able to afford a property at all.
Virgin Money have specifically launched several five-year fixed products with £1000 cashback fees on standard mortgages and a combination of fixed shared ownership mortgages. The details are listed here:
Purchase Exclusives with £1,000 cashback
NEW 85% LTV 5 Year Fixed Rate with £995 fee at 1.99%.
NEW 90% LTV 5 Year Fixed Rate with £995 fee at 2.38%.
90% LTV 2 Year Fixed Rate with £995 fee has been reduced to 1.89%.
95% LTV 2 Year Fixed Rate fee-saver has been reduced to 2.98%.
95% LTV 5 Year Fixed Rate fee-saver has been reduced to 3.03%.
Selected 85-90% LTV fixed rates have been reduced by up to 0.32%.
Selected BTL fixed rates have been reduced by up to 0.14%.
NEW Greener 90% LTV 5 Year Fixed Rate with £995 fee at 2.40%.
5 year fixed rates now start from 2.10%.
95% LTV fixed rates have been reduced by 0.11%.
As you can see, across the board the rates and products are fairly competitive especially at high loan to values such as 90 and 95% and a 5-year fixed rate for shared ownership products starting at 2.10% is very good. The green product above is also a new introduction and is only available on properties that have been specifically built to be eco-friendly.
Virgin Money national sales manager Richard Walker says: “Shared ownership is a key part of the mortgage market and the changes we’ve just announced show our commitment to buyers in this segment. The pandemic has led to people evaluating their circumstances and we’re seeing an increase in customers looking to buy their own home as a result. Recent research shows that the average price of a house in the UK surged to 8.8 times the average income. This was up from a previous high of 8.7 times in August 2007. There’s been a steady rise in house prices at the same time but because shared ownership needs a smaller deposit, it offers a quicker route for first-time buyers in particular to get that all important foot on the housing ladder so it’s often a welcome alternative for younger buyers.”
If you or anyone you know is considering a shared ownership or just wants to talk to a friendly professional advisor about your mortgage options, then feel free to give our team a call on 02088771169.