Barclays & Bovis Homes team up to offer mortgage deal

Barclays mortgage arm Woolwich, has launched a market-leading mortgage product offering borrowers up to 90% loan to value (LTV) available to those wanting to purchase a new home with Bovis Homes - one of Britain's leading housebuilders.The move by Woowlich mortgages is part of a new camapign to help stimulate the new-build market in a sustainable fashion while providing affordable mortgages for people that cannot afford large deposits.

The Insurance broking group Jardine Lloyd Thompson (JLT), who designed the innovative scheme in partnership with Barclays and Bovis Homes, is also offering free unemployment protection to buyers for a three year period starting on the date of exchange.

This new mortgage deal is offering one of the most competitive rates in its level since the start of the recession, fixed at 4.99% for two years on loans up to 90% LTV. After this fixed term the rate reverts to a lifetime tracker at base + 2.49%, which would equate to just 2.99% based on today's rate. The arrangement fee is £999.

The mortgage package has been nick-named 'The Perfect 10' and has been targeted at home-movers with limited equity, with the potential to particularly benefit first-time buyers who are currently able to avoid pay stamp duty on purchases up to £250,000. For example, a first-time buyer purchasing a Bovis Home for £150,000 would require a mortgage of £135,000, paying back £788.41 per month on a 25-year repayment basis.

Andy Gray, head of mortgages for Barclays said: "The deal struck today is about helping to get the housing market back on the right track but in a way that is sustainable in the long term. We believe this mortgage provides an affordable rate at 90%, striking the right balance for Barclays, Bovis Homes and its customers.

"We are now starting to see more competition and consumer confidence return to the market and we believe this gives the right level of rates with the security of a fixed rate deal for the first two years, ensuring that those with limited equity have the security of knowing what their payments are in the early years. This is about giving good rates at the right time which is excellent news for home-buyers and the housing market."

David Ritchie, Chief Executive of Bovis Homes, said: "In the current market, the ability of purchasers, especially first-time buyers, to access high loan to value mortgage finance has been severely curtailed. Working with Barclays, we have agreed 'The Perfect 10' mortgage package, which allows our customers to borrow up to 90 per cent of the value of their new Bovis Home at a very attractive fixed interest rate.

"Many of our potential customers are struggling to save the higher deposits required by the mortgage market today and this innovative new product, which is currently only available to us, will mean that more customers will be able to buy a new Bovis Home now, at a more affordable cost."
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