Vernon Building Society Introduces “Head Start Mortgage” Range

Vernon Building Society has launched a range of mortgages in an effort to help first-time buyers get onto the housing ladder.

The Head Start Mortgage offering is a co-borrower, sole proprietor mortgage combined with a guarantor product.

Indeed, it allows one or more family members to accompany a buyer in two ways: by providing security on the mortgage and also by becoming a co-borrower, which allows an FTB to borrow 100% of the value of the property in his own name.

Collateral on borrowings above 80% LTV must be cash held in a Vernon savings account or a charge on their property (on borrowings above 75% LTV).

After five years, the “caregiver” will receive their funds or have the legal charge removed from their property, as long as the buyer can afford to take out the mortgage themselves.

The No-Fee Head Start Mortgage has an interest rate of 3.40%, a lifetime discount of 2.7% over the lender’s standard variable rate of 6.10%. The interest rate is also “floored”, which means that it will never fall below 2.50% during the discount period.

The mortgage is available for loans ranging from £125,000 to £500,000, up to a maximum term of 35 years.

Vernon Building Society, Mortgage and Savings Distribution Manager at Vernon Building SOciety, Brendan Crowshaw, says: “We are excited to launch Head Start to help homebuyers have their own home with the support of their families.

“This innovative mortgage helps borrowers increase their buying power and overcome the barriers of deposit and affordability of buying a home.”

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