27 July 2017
Virgin Money has extended its support for the new build sector by launching a range of 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 home. 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 offers many of the benefits of a new build property but with the added flexibility to customise the property to the needs of the customer.
The new Custom Build products that have been launched are:
Virgin Money’s Custom Build products provide flexibility for customers by 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, Virgin Money does not pass on the charge for indemnity insurance, saving customers £1,300 on average in upfront costs.
Virgin Money Custom Build loans are available to all intermediaries, with loans submitted via BuildLoan, the UK’s leading Custom Build specialist.
Virgin Money has also launched a brand new range of Shared Ownership mortgages, which provide an affordable way for people to get a foot on the property ladder. They can buy an initial share of between 25% and 75% 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:
New five-year Shared Ownership products:
Products will initially be available through specialist intermediary partners for properties in London, the South East and the South West, with the intention to broaden availability over time.
As part of Virgin Money’s ambition to make everyone better off, it will donate £100 to Crisis, the national charity for homeless people, for every Custom Build and Shared Ownership mortgage completion. Virgin Money’s 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.”
Rachel Pyne, BuildLoan Operations Director said: “We're delighted to work with Virgin Money on Custom Build. Together with our intermediary partners we'll give customers real choice and put them in control of designing and building their dream home.”
Jon Sparkes, Crisis CEO said: “We are delighted to be working with Virgin Money. With the generous support of our partners and donors, we are able to deliver life-changing housing, health, education and employment services to homeless people across the country, helping them leave homelessness behind for good. On behalf of everyone at Crisis, I’d like to thank Virgin Money for their support.”
Full details of Virgin Money’s mortgage range are available at www.virginmoney.com