Melton Mowbray Building Society has agreed a unique mortgage to
make it easier for first-time buyers to get a foot hold on the
property ladder.
The Leicestershire-based building society has worked with staff
at EMHomeBuy, part of East Midlands Housing Group, based in
Coalville, to bottom out the agreement, believed to be the first of
its kind.
Melton is now the only building society, in at least the East
Midlands, to offer a 70 per cent mortgage - without a penny deposit
- for customers buying a new property in the region through the
HomeBuy Direct scheme.
HomeBuy Direct, characterised by a 30 per cent loan
contribution, paid for jointly by the developer and the Homes and
Communities Agency, was introduced to help people struggling to buy
on the open market.
Martha Smith is Sales and Marketing Manager at EMHomeBuy, the
government appointed HomeBuy agent for the region. She said: "Most
building societies in this region now insist on at least a five per
cent deposit from the buyer before agreeing a mortgage, which
defeats the point of the scheme.
"We started working with Melton Mowbray Building Society in
January. We had various meetings with them and the HCA, and the
result is that they have just introduced this new product which is
being offered throughout the East Midlands."
"We are very pleased with the outcome - it is good news not only
for home buyers, but also for developers and our other partners
across the region. We hope that other building societies will
follow suit in helping us to ease people's path onto the property
ladder," she added.
The EMHomeBuy team has briefed Melton's branch staff,
independent financial advisers and customer service centre staff on
the detail of the mortgage so they can confidently advise house
hunters.
The building society was incorporated in 1875 and has just three
branches; Melton Mowbray, Leicestershire; Grantham, Lincolnshire;
and Oakham, Rutland. Its services are also offered through eight
agency offices across the region, including in Lutterworth Road,
Blaby and Uppingham, Rutland.
Karen Middleton, Group Marketing Director of Melton Mowbray
Building Society, said: "We are pleased to be taking a leading role
in making home ownership accessible."