For new build flats the maximum 85% LTV will remain and for converted or refurbished properties the maximum LTV will remain as 80%. Shared ownership We are increasing the maximum LTV for purchases on the shared ownership scheme from 90% to 95% of the customers share. This applies for both second hand and new build purchases (houses/bungalows and flats), unless the property is a new build conversion or renovation where we will restrict this to 80% of the share being purchased. Any LTV restrictions in Scotland and Northern Ireland will continue to apply. The customer must pay a minimum 5% personal deposit of the share being purchased. The deposit must be a minimum £4,000 and this excludes any deposit provided by a builder or housing association. Cash incentives are acceptable provided the total value of the loan plus incentive, and any product fee being added, together does not exceed 95% of the value of the share being purchased. The ‘Homebuyer Special’ scheme would not be selected on shared ownership applications above 90% LTV. As a reminder it is important on shared ownership applications that the correct rental amount, and on shared equity applications the correct interest payment, are keyed. For Help To Buy shared equity schemes in England & Wales a 3% interest amount should be keyed and for schemes with planned payment increases the higher figure should be keyed e.g. if in years 1-5 is 3% but increases to 5% from year 6, the 5% figure must be keyed. |