The Eco Building Association has launched a new high loan value (LTV) mortgage.
Shared affordable local home mortgages are designed for affordable properties through discount market sales programs.
The variability rate of the cost-free product is 5.54%, providing up to 95% of LTV.
Discounted market sale of homes is a permanent discount property that can serve as a stepping stone for first-time home buyers. They are only for local residents, which can help communities thrive by ensuring people can stay locally.
Ecology’s affordable local home mortgages have a maximum term of up to 35 years, no filing fees or early repayment fees, and unlimited overpayment options to make it as flexible as possible.
Additionally, the association has lowered its stress test rate to 1.75%, part of the ongoing focus on how to help more first-time home buyers and provide solutions to affordable challenges.
“Most lenders are reluctant to offer home loans for properties with residence restrictions, so the lack of mortgage choice risks locking first-time buyers in the housing plan created to help them,” said Daniel Capstick, senior mortgage products and proposition manager at Eco Building Association.
“This is especially true for programs designed to enable buyers to stay in their place, they are connected to family, friends and work.”
“Ecologically, we believe that being able to maintain these local connections is an important part of building and maintaining sustainable communities, so we want to create a competitive new product that makes it easier for more people to stay localized as they step on the housing ladder.
“Our affordable local home mortgages are designed specifically to provide buyers who sell homes in the discount market to support government programs like First House, local authority projects that comply with Article 106 agreements, or community-led programs that are community-led by groups such as Community Land Trusts.”
Last month, Ecology launched a refurbished mortgage for owners and buyers who want to cut their home footprint.
