Share ownership mortgages available

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by Kay Murchie

A new mortgage is on offer which allows a first time buyer a shared ownership mortgage for properties in Scotland.

It is a fixed 3-year rate of 6.99% and allows individual borrowers up to 95% Loan to Value (LTV) on their share, but only a maximum LTV of 75% is allowed. Consequently, first time buyers would still have to find a combined 25% deposit.

The mortgage allows individuals to borrow up to 95% of their share in the property without paying a higher lending charge and it is fixed until the end of August 2010.

The Leeds are aware of the problems that first time buyers are up against so they are finding ways of getting them onto the property ladder.

With recent studies showing that the average house price is likely to be 10 times the salary, schemes like this can only benefit first time buyers. It is also important to keep initial costs low which is why they will lend 95% of their share.

Once the borrower is comfortable with monthly payments, the offer of purchasing a greater share of the property is available so that they will ultimately own the property.