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Woolwich offers exclusive mortgage for Bovis customers

Woolwich has launched a new mortgage available exclusively to people buying a new home with Bovis Homes as part of an effort to stimulate the new build market and to accommodate those with low deposits.

The scheme, which was designed by insurance broking group Jardine Lloyd Thompson in partnership with Bovis and Barclays, offers Bovis customers a mortgage with a loan-to-value of up to 90 per cent and three years free unemployment protection for three years from the date of exchange.

The rate is fixed at 4.99 per cent for two years with loans up to 90 per cent LTV, then reverts to a lifetime tracker at base rate plus 2.49 per cent. The arrangement fee is £999.

The lender says the deal is aimed at home-movers with limited equity and first-time buyers.

The deal, which is being marketed as the ‘Perfect 10’, has been made possible as Bovis recently set up an insurance company to provide protection to Barclays, therefore minimising the risk associated with higher LTV loans.

Barclays head of mortgages Andy Gray says: “The deal struck today is about helping to get the housing market back on the right track but in a way that is sustainable in the long term. We believe this mortgage provides an affordable rate at 90 per cent, striking the right balance for Barclays, Bovis Homes and its customers. 

“We are now starting to see more competition and consumer confidence return to the market and we believe this gives the right level of rates with the security of a fixed rate deal for the first two years, ensuring that those with limited equity have the security of knowing what their payments are in the early years.”

Bovis Homes chief executive David Ritchie says: “Many of our potential customers are struggling to save the higher deposits required by the mortgage market today and this innovative new product, which is currently only available to us, will mean that more customers will be able to buy a new Bovis Home now, at a more affordable cost.”

The product is available on new Bovis Homes across England and Wales.

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