Skipton Building Society is entering the shared ownership market with an intermediary product in partnership with three of its distributors.
The partnership with Legal & General, Connells and Yorkshire Housing Association will allow Skipton to test the success of the product and act upon broker feedback before rolling it out to the whole of market and offer products for all shared ownership.
This will include new build houses and flats to 90 per cent loan-to-value, providing the borrower’s share is 25 per cent to 75 per cent of the property value.
Skipton is also introducing an increased procuration fee for shared ownership of 0.45 per cent, versus a non-shared ownership residential of 0.4 per cent, because of the extra time it takes brokers to process these cases because of their involvement in the pre-qualification for the housing association.
Kris Brewster, head of products at Skipton, said: "Skipton continues its commitment to build mutually strong relationships with our valued professional partners and so we are delighted to announce the trial of our first shared ownership mortgage, with three of our key distributors.
"At Skipton Intermediaries we spend a great deal of time talking with and listening to our broker partners and regularly action upon their feedback. We know through regularly discussions with our key partners that there is an increasing demand for shared ownerships mortgages to help people take their first steps onto the property ladder.
"Before we launch the product to the whole of market, we wanted to pilot the product first and gather broker feedback, so when we do a full roll out of the product, we are able ensure it is tailored to all of our broker’s needs."
Skipton’s range of shared ownership purchase products include two-year fixes at 2.19 per cent at 90 per cent LTV with a £995 fee, and a fee-free deal at 2.68 per cent to 90 per cent LTV.
It also includes five-year fixes at 2.65 per cent to 90 per cent LTV with a £995 fee, and fee-free mortgage at 2.94 per cent to 90 per cent LTV.
For those wishing to remortgage on shared ownership, the range includes a fee-free two-year fix at 2.84 per cent to 90 per cent LTV and a fee-free five-year fix at 2.98 per cent to 90 per cent LTV and there is a choice of either £500 cashback or free standard legals.
The products can be used for new build houses and flats to 90 per cent LTV, with minimum loans of either £25,000 or £85,000 depending on the product.
Craig Hall, new build manager at Legal & General Mortgage Club, said: "Shared ownership provides an affordable alternative in helping customers onto the property ladder, who otherwise may have thought it was not possible.
"Despite the success of the government scheme many potential home buyers are still unaware of the scheme, and as an industry there is work to be done in promoting its benefits.
"We have been delighted to assist the Skipton Building Society in developing their proposition and for choosing us as one of its key distributors and as more lenders enter this space."