West Brom Building Society has cut rates across its 95% loan-to-value Shared Ownership purchase range by up to 0.12 percentage points, with its lowest reported rate at 5.78% and no fees on the affected two-, three- and five-year fixes. Pepper Money has also extended affordable-housing mortgage terms to up to 40 years for Shared Ownership, Right to Buy and First Homes borrowers.
These changes may widen options for first-time buyers facing high monthly costs, but advisers should frame affordability beyond the initial mortgage payment. Shared Ownership customers need clear explanations of rent on the unsold share, service charges, staircasing, resale restrictions and the risks of longer repayment terms. AI-driven affordability tools can help compare scenarios, but inputs and assumptions must be transparent and checked by an adviser.
- Compare total housing costs, not simply headline mortgage rates.
- Discuss the long-term interest cost of extending the mortgage term.
- Document how product features and tenure-specific risks have been explained.