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Advantage joins Government homebuy scheme

Advantage has joined the Governments Open Market Homebuy scheme as its fourth lender.

The Morgan Stanley-owned firm has added its name to that of HBOS, Nationwide and Yorkshire Building Society as a partner in the initiative.

The Government scheme has come under fire over recent months for failing to attract enough lenders, while those on board have warned rates are likely to be higher than conventional home loans.

From October, households qualifying for the scheme will be able to apply for a regular mortgage topped up with an equity loan which will be 25 per cent of the total home loan.

The news comes as Advantage unveils its separate new home ownership plan, Flexishare, for first time buyers, key workers and growing families.

The prime product sees the borrower retaining ownership of 100 per cent of the property. It consists of a conventional mortgage of up to 80 per cent of the property price and a separate loan of the remaining value minus deposit. The borrower then owes the lender a percentage of the property price increase equal to the value of the loan as a percentage of the original property value.

Advantage managing director Keith Dearling says: Flexishare will enable mortgage intermediaries to target a new sector of the population and therefore write incremental business whilst adding value to their clients.

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