Newbury Building Society has reduced the rate of its Shared Ownership
variable mortgage product.
The reduction of the three-year variable mortgage rate from 3.24 per cent to
2.99 per cent puts the product at a lower rate than the three-year fixed rate
mortgage, at a 1 per cent difference between the two.
The variable mortgage is available up to 95 per cent of the share the borrower
is buying and can be used to purchase new build properties and there is no
early repayment charge (ERC).
Roger Knight, lending manager at Newbury Building Society, said: "No ERC
means the borrower is able to clear their mortgage early with no penalty
charges or exit the mortgage when they wish.
"This type of mortgage is perfect for those who value their flexibility or if their
circumstances unexpectedly change."
Scott Gallacher, chartered financial planner at Rowley Turton, said: "With
wages squeezed after a decade of austerity and house prices relatively high by
historical standard, shared ownership is, for many, the best hope of getting on
the property ladder.
"Consequently the reduction by Newbury in their rate will be welcomed by potential first-time buyers.
"Although, depending on your circumstances, there does appear to be better mortgage deals out there."
Jenny Turton is a freelance journalist