The Co-operative Bank is hoping to lend a helping hand to first time buyers with their new 100% shared ownership mortgage.
The new product allows first time buyers to borrow 75% LTV from the bank and the remaining 25% from a local housing association. The scheme is being run on a regional basis and the contractor mortgages can be obtained from a few strategic partners.
A spokesperson from the Bank said that this reinforces the institution’s commitment to social inclusion, community support and first time buyer assistance.
The Co-op already offers 90% mortgages, a Share to Buy scheme operated through Britannia quite a few shared ownership products. First time buyers can avail of the new scheme on any Co-operative Bank mortgage.
Last month, the Co-operative Bank and Britannia launched a 90% LTV two year fixed rate mortgage, with the interest rate set at 5.09% and an application fee of £999.
At that time, James Hillon, from Co-operative Financial Services, said the new product would provide a welcome boost for both first time buyers and people moving home.
Co-operative Financial Services and the Britannia Building Society merged in August last year and since then have seen profits rise substantially. Profits rose from £81.4m in the first half of 2009 to £109.3m, in the first half of this year. The Co-op also saw a 31% increase in mortgage applications in the first half of this year.
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