Brokers have praised Barclays’ new mortgage deal for clients buying Bovis homes and hope to see the scheme replicated with other lenders to have a greater impact on the newbuild market.
The scheme, which has been designed by insurance broking group Jardine Lloyd Thompson in conjunction with Barclays and Bovis, means that the construction company will guarantee its customers’ mortgages with Barclays, so the bank can offer more favourable rates and higher loan-to-value ratios.
The mortgage, which is being marketed as “the perfect 10”, is fixed for two years at 4.99 per cent for loans up to 90 per cent LTV and is aimed at homemovers with limited equity and first-time buyers.
First Action Finance head of communications Jonathan Cornell says the product is innovative and he hopes to see more similar offering from other lenders.
Cornell says: “A major lender offering such competitive 90 per cent products on newbuilds is fantastic. I hope we see more of it.
“But I don’t think it will be rolled out everywhere straight away. By just dealing with one developer, Bovis, Barclays can get a good idea of exactly what it is lending.”
London & Country head of communications David Hollingworth says the deal shows the positive effects of co-operation and called on other firms to replicate it.
He says: “Certainly, it is a first of its kind at the moment. I think it is a good example of how organisations can work together to try and open things up a little bit.
“If we see it replicated elsewhere, it could inject a bit of improvement into the newbuild sector.”