Scottish Widows Bank has launched a new key worker mortgage as a rival to the Government’s own Open Market Homebuy scheme.
The product will give key workers the opportunity to buy their own home outright, rather than just part owning it. It will also offer homebuyers the choice to buy with 102 per cent LTV, which will help those who find it difficult to save for a deposit.
The Bank will offer enhanced income multipliers of up to 5 x salary for a single applicant and 5 x + 1 or 4.5 x joint salaries.
Head of product development and marketing Richard Clark comments: “Getting onto the property ladder is an uphill struggle for first time buyers and it isn’t getting any easier, particularly for Key Workers who often don’t earn enough to even contemplate being able to buy close to the area where they work.
“We have launched this product to offer Key Workers an alternative to the existing Government scheme. With the Government recently announcing that they will not be putting any new money into the Open Market Homebuy scheme, we believe that our product will offer a genuine solution for Key Workers, including the opportunity to own 100% of their property.”
The minimum age for the product is 21 with the maximum age is 40. It is available for first time buyers and people upsizing/remortgaging.
The choice of rates available including 2, 3 and 5 year fixed, stepped fixed rates and a base rate tracker and an offset facility is available.