Teachers Help to Buy and Shared Ownership at 4.99%
Teachers Building Society has unveiled new Help to Buy and Shared Ownership deals.
Available for home purchase and remortgage, the Help to Buy deal is a fixed rate of 3.19 per cent until 14 January 2019.
It then changes to the society’s standard variable rate, currently 4.99 per cent, for the remainder of the term.
The deal is available for loans up to 75 per cent loan-to-value (LTV) and is arrangement fee free but there is a £99 application fee.
Early repayment charges are applicable and the remortgage package includes free valuation and £250 towards legal costs.
The Shared Ownership fixed rate mortgage is available for loans up to 95 per cent LTV and is for home purchase and remortgage.
Again the deal is a fixed rate of 4.99 per cent until 14 January 2019 when it changes to SVR.
There is a £99 application fee, ERCs are applicable and the remortgage package includes free valuation and £250 towards legal costs.
“Helping teachers and local residents step onto and move up the property ladder remains our top priority, so it is important that we work hard to ensure we meet their needs,” said Andy Yates, business development manager at Teachers Building Society.
“This means supporting government schemes, making our rates as competitive as possible and providing fixed rate products for those customers seeking the security of a set payment plan.”
Vikki Jefferies, mortgage proposition manager at Personal Touch Financial Services, said: “Great to see further innovation from Teachers with new products which will fill important gaps in the market and support the acceleration of government scheme take-ups, especially among first-time buyers.”
However Jane King, mortgage consultant at Ash-Ridge Private Finance, argued the rate of 4.99 per cent is “not particularly competitive”.
She pointed to Leeds Building Society and Newbury Building Society which both currently offer free valuation and low arrangement fees at three-year fixed rates of 4.59 per cent and 4.49 per cent retrospectively.
Ms King said: “Therefore I would be hard pushed to recommend them on the odd occasion I have used them I find their service levels very slow.”
In response to Ms King’s comment, a Teachers’ spokesperson said: “Teachers Building Society prides itself on delivering a fast and friendly service to brokers and is contacting Ms King to find out more about her unsatisfactory experience.”
katherine.denham@ft.com
