RBS Intermediary Partners (RBS IP) has announced that it is now accepting mortgage applications from intermediaries for clients who have secured funding from the government’s MyChoiceHomeBuy scheme. It will accept applications of up to a maximum of 85% loan to value (LTV) and subject to the normal affordability checks, with the housing association loan included in the outgoings calculated at 3% a year.
The scheme provides homebuyers with a loan of between 15-50% of a property’s purchase price through a housing association. The mortgage holder then pays the housing association a monthly fee for the lifetime of the loan, with the loan being repaid when the property is sold. RBS IP will treat the housing association loan as a standard deposit and not an incentive or discount on the purchase price.
Chris Pearson, Director of Intermediary Mortgages, Royal Bank of Scotland, commented: “With the industry investigating ways in which first time buyers can be helped, the MyChoiceHomeBuy scheme provides them with a credible route. We are delighted to be able to now accept applications through this channel and are looking forward to a healthy flow of business from our business partners.”
Applications using the MyChoiceHomeBuy scheme will be accepted for the RBS purchase and First Active remortgage brands
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