Yorkshire Building Society offering more equity

29-Nov-2007

Yorkshire Building Society has revealed that it is to increase the amount of equity it provides to borrowers looking to take out shared ownership mortgages.

The firm has said that it is offering the product at a lower rate than its previous deal despite the funding issues that have affected the credit market of late.

The Open Market HomeBuy (OMHB) facility will mean that 32.5 per cent of the loan will be interest free for the first five years. The building society will provide 15 per cent of the loan interest free for the first five years, with 17.5 per cent provided by the government at an interest free rate for the entire duration of the mortgage.

Interest of three per cent will be charged on the building society's loan following the end of the initial five year period.

"The 32.5 per cent total equity loan is an increase on the previous scheme, thereby increasing the customers' buying power and reducing their costs," said Yorkshire Building Society corporate development director Andy Caton.

"We have been delighted with the progress of OMHB so far and are firmly committed to offering potential buyers the best deal possible.

"Despite the increase in funding rates, we have been able to offer a product at a lower rate than the previous product and with no application fee," Mr Caton added.

The building society previously provided 25 per cent of the loan. Last month the Orbit Group said that shared equity deals had been "well received" by first time buyers.

Best mortgage deals 'provided by building societies'.



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