Larkfleet Homes has signed an exclusive deal with Melton Mowbray Building Society which will give qualifying buyers of Larkfleet properties access to a mortgage at just 2.39 per cent interest for the first three years.
After the initial period the rate goes up to the building society’s standard variable rate which is currently 4.99 per cent – giving an overall cost over the life of the mortgage of 4.5 per cent APR.
Larkfleet Homes managing director Karl Hick said: “This deal – which is not available from any other housebuilder – will help to keep repayments low during the crucial first few years of a mortgage, a time when housebuyers’ budgets are often most stretched.
“But the deal also offers an opportunity to pay off up to 10 per cent of the loan during the first year with no early repayment charges.”
The arrangement with Melton Mowbray Building Society is just one of the ways that Larkfleet is trying to help people get onto or move up the property ladder.
It is offering the government’s Help to Buy scheme on several of its developments across the East of England and East Midlands.
The scheme allows homebuyers to potentially own 100 per cent of their new home with just a 75 per cent mortgage and a five per cent deposit. Help to Buy can be coupled with the Melton Mowbray Building Society mortgage to help drive down the cost of purchasing a new home.
Homebuyers using Help to Buy receive an equity loan from the government for the 20 per cent of the property value not covered by their deposit and mortgage. The equity loan is interest-free for five years and can be repaid at any time or on the sale of the home.
The Help to Buy scheme is available to first-time buyers and to current homeowners who are selling to buy a new home. There is no eligibility cap on household income or any restriction on the number of bedrooms a property bought under the scheme may have.
Help to Buy is available on properties at Larkfleet’s Abbeyfields development in Bourne (Lincolnshire), its Leighfield Park development in Oakham (Rutland) and The Coppice development in Deeping St James (Lincolnshire) – all of which are also offering the Melton Mowbray Building Society mortgage to qualifying buyers.