Cheshire launches shared ownership loan

The Cheshire’s fixed rate mortgage follows could help 'priority first time buyers' on to the property ladder, offering a rate of 6.80% for the first three years, moving to the standard variable rate for the rest of the mortgage term. There is no arrangement fee or standard valuation fee to pay as the Cheshire covers 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.

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.