Type: Discounted rate shared ownership mortgage
Discounted term: Three years
Payable rate; 5.65%
Minimum loan: 25,000
Maximum loan: Shared ownership up to 100% of valuation of the share in the property subject to a maximum of 250,000, homebuyers up to 75% of valuation subject to a maximum of 250,000
Income multiples: Up to 3.25 times principal income plus second or 2.6 times joint
Conditions: Free valuation, no CCJs or defaults in last 24 months but one historical CCJ or default up to 500 acceptable, up to three months arrears from at least two years ago acceptable if satisfactory reasons provided
Arrangement fee: 150
Redemption fee: 3% of the original loan in the first three years if more than 50 per cent of the mortgage is repaid
Introducers fee: 0.3% of the original loan
Tel: 08707 590170
Pink Home Loans three year discounted shared ownership mortgage, in association with Mutual One, which is funded by the Ipswich Building Society is available up to 100 per cent of the valuation of the borrowers share of the property.
Franklins Financial Services partner Ken Thompson says: This mortgage helps first time buyers without a deposit purchasing on shared ownership scheme.
Thompson likes the free valuation but feels this deal is probably better for smaller mortgages of less than 60,000.
Looking at the potential drawbacks, Thompson complains that the deal does not appear on the mortgage broker sources system. He also feels the adviser remuneration could be better, for example, 0.35 per cent of the original loan.
On the subject of possible competitors Thompson says: It is nearly identical to Newburys affordable housing three-year discounted-rate mortgage.
He also feels competition could come from fixed-rate shared ownership schemes from lenders such as West Bromwich and Manchester Building Societies
Suitability to market: Good
Competitiveness of rate: Average
Adviser remuneration: Average