Mortgages  

Mansfield offers new shared ownership deal

Mansfield offers new shared ownership deal

Mansfield Building Society has introduced a shared ownership mortgage with no early repayment charges.

The society is offering its cheapest variable rate shared ownership mortgage with the opportunity to switch to a fixed rate at any time, in a bid to offer borrowers "freedom and flexibility".  

Mike Taylor, head of products at Mansfield Building Society, said: "In the current low interest rate environment it is only natural that borrowers consider the security of fixed repayments. However, borrowers should also be encouraged, where budgets permit, to consider alternative product options available."

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The offer includes a two-year discounted rate, a 3.49 per cent variable pay rate (2.10 per cent below SVR), up to 95 per cent of share and 75 per cent loan-to-value and £199 application fee with no completion fee.

Borrowers will also be entitled to a free basic valuation and will be able to switch to a fixed rate loyalty product without incurring a penalty.

Mansfield Building Society said the product was aimed at customers wanting to take advantage of lower interest rates with the added security of moving to a fixed rate if their circumstances or the interest outlook changes.

The mortgage is available for purchase, staircasing and remortgage on properties across England and Wales.

David Hollingworth, associate director of communications at L&C, said the offer of a variable rate could be a preferable option for some borrowers.

He said: "The majority of borrowers are opting for the security of fixed rates at the moment and that will also be true in the shared ownership sector. However, it’s important not to rule out the alternatives and a variable rate could work for some.

"Mansfield has recognised that removing the lock in period at least gives borrowers some comfort that they can keep their rate under review and switch into a fixed rate if rate movements make them anxious.  

"The high percentage of the share that can be borrowed is a crucial aspect for shared ownership and keeping set up costs down with a low fee and free valuation also looks well targeted."

rachel.addison@ft.com