Cheshire’s Shared Ownership Mortgage Prevents Big Brother Style Squabbles

23rd June 2008

Cheshire Building Society is offering a Shared Ownership mortgage for those struggling to get on the property ladder*.  It provides a viable option to buying with friends for individuals who are put off by the recent squabbles seen in the Big Brother house and want to go it alone. 

At first living with friends may seem a good idea but as fights between housemates in the Big Brother house demonstrate, it can soon turn into a big bother. 

The Cheshire’s fixed rate mortgage follows on from the Government’s call to get more “priority first time buyers” on to the property ladder, offering a great rate of 6.80% for the first three years moving to the standard variable rate for the rest of the mortgage term. Not only that, but there is no arrangement fee or standard valuation fee to pay as the Cheshire cover them both.  The overall cost for comparison is 7.3% APR.

Under the Government’s HomeBuy scheme, first time buyers earning less than £60,000 can purchase a percentage of a property with the remainder belonging to an organisation, typically a housing association**, to which rent is paid.     

James Taylor, Mortgage Product Manager for Cheshire Building Society said: “Big Brother is a reminder to potential homebuyers that friends can easily become friend-emies when you move in together.  Shared ownership is a great alternative, allowing individuals a helping hand to get on the property ladder in a gradual way and still benefit from any increase in the value of the property, with the option of purchasing a larger proportion of the property in the future.

“The Cheshire’s shared ownership mortgage offers all the benefits of its standard range including a free valuation, payment holidays and the ability to over pay during the course of the loan.”

Loans are available up to 100% of a share in the property and 75% of the property value (terms and conditions apply). A booking fee of £100 is payable on application and will be refunded within 10 days of completion.

In the event of the mortgage being repaid, in full or in part during the fixed rate period, an early repayment charge applies of 3% in the first year, 2% in the second year and 1% during the remaining fixed rate period. The charge will be made on the original loan amount or, in the case of part repayment, the amount of capital repaid.
 
For further information simply call into any Cheshire Building Society branch, visit the Society’s website at www.thecheshire.co.uk or contact the Customer Contact Centre on 0845 055 5995 (all calls charged at local rate).  Lines open 8am -8pm weekdays, 9am – 4pm Saturday.  For security and training purposes, telephone calls may be monitored or recorded.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Products are subject to availability and may be withdrawn OR subject to change by the Society without notice.

* The Cheshire’s Shared Ownership mortgage is available exclusively for properties in the North West of England

**The organisation must be included in Cheshire Building Society’s list of approved housing associations.