Virgin Money has announced extended support for the new build sector with new products to support borrowers for Custom Build and Shared Ownership properties.
Custom Build is an innovative way for customers to design and build their own help. It offers plots of land with outline planning permission and services already installed where customers can determine the design and layout of their new home. Custom Build gives customers the benefits of a new build property with the added flexibility to customise it to their individual needs.
The new Custom Build products that Virgin Money is launching are:
- Three-year tracker rate at 80% LTV available at 4.79% (£1,995 product fee)
- Three-year tracker rate at 85% LTV available at 4.99% (£1,995 product fee)
These products provide flexibility for customers, allowing them to transfer to a new product, with no Early Repayment Charge, at a time that suits them following the completion of their new home. Additionally, customers will save £1,300 on average in upfront costs as Virgin Money does not pass on the charge for indemnity insurance.
Virgin Money has also launched a brand new range of Shared Ownership mortgages – providing an affordable way for people to get a foot on the property ladder. Customers can buy an initial share of between 25 and 75 per cent of a home, and pay an affordable rent on the remaining share owned by a housing association. This helps customers achieve their home ownership aspirations in more manageable stages and, importantly, they can do so with a smaller deposit.
New two-year Shared Ownership products:
- Fixed rate at 85% LTV available at 1.84% (£995 product fee, £300 cashback)
- Fixed rate at 85% LTV available at 2.44% (No product fee, £300 cashback)
- Fixed rate at 90% LTV available at 3.69% (No product fee, £300 cashback)
New five-year Shared Ownership products:
- Fixed rate at 85% LTV available at 2.34% (£995 product fee, £300 cashback)
- Fixed rate at 85% LTV available at 2.89% (No product fee, £300 cashback)
- Fixed rate at 90% LTV available at 4.29% (No product fee, £300 cashback)
Virgin Money will also be donating £100 to Crisis, the national charity for homeless people, for every Custom Build and Shared Ownership mortgage completion. And their partners BuildLoan, Countrywide and Eversheds will also make additional donations for every Custom Build completion through Virgin Money, taking the total donation to £150 per loan.
Peter Rogerson, Virgin Money’s Director of Mortgages said: “Virgin Money is committed to getting Britain building and helping more people achieve their dream of home ownership. We are delighted to be the first mainstream lender to launch a Custom Build proposition, as we want to offer more choice in an underserved section of the market that has huge growth potential. Our new Shared Ownership range will support customers with a more affordable route into home ownership, giving people access to property who might otherwise be excluded.”
Alok Sharma, Housing and Planning Minister said: “This Government is determined to make housing more affordable, increase housing supply and help more people get onto the housing ladder. Shared Ownership and custom build housing can play a crucial role in this, helping to deliver the homes people want and supporting first time buyers. That is why it’s great to see Virgin Money launching a new range of mortgage products to support aspiring custom builders design their dream home and those wishing to buy through Shared Ownership.
“We’ve already helped hundreds of thousands of people become homeowners through government-backed schemes and want even more people to benefit in the future.”
For more information on Virgin Money’s mortgage range, head to the Virgin Money website.