Bristol woman signs unique housing mortgage

Edited by the Buildingtalk editorial team Dec 4, 2006

The first time a housing organisation has directly offered its customers mortgages, says Places for People.

Housing developer Places for People offering range of finance products.

A young woman from Bristol struggling to get onto the property ladder has become the first person to take advantage of an innovative mortgage offer from Places for People.

Jackie Davies, a 26-year-old administrator has taken out a GBP55,000 mortgage with the UK's largest housing and regeneration group to buy a 50 per cent share of a one-bed house in Totterdown, Bristol.

This is the first time a housing organisation has directly offered its customers mortgages, and is one of a number of finance products and options that the Group is now offering to help its customers purchase a share in their homes.

The organisation launched a range of financial products to customers in July 2006, including personal and small business loans and mortgages, in a bid to prevent them relying on high interest doorstep credit lenders, and to help them onto the property ladder.

Places for People directly lends personal and small business loans to customers alongside a range of exclusive mortgages - tracker, discount and fixed-rate - which are provided by the Co-operative Bank.

So far, over GBP200,000 has been loaned to 153 customers and 11 mortgage applications are currently being processed.

Jackie Davies said: "I have wanted to buy a property for several years, but with my income have found it difficult to get a mortgage or raise the five per cent deposit needed.

"This mortgage has given me the chance to buy a share in a (new-build) home and yet still pay the same amount per month that I would have, if I were renting a property".

David Cowans, chief executive of Places for People said: "I am delighted for Jackie who like many people, has wanted to get onto the property ladder for a long time, yet has been deterred from doing so by the increase in house prices and a lack of affordability".

"These financial services underline our determination to work with our customers to create sustainable communities.

They help people to step onto the housing ladder and gives them greater choice and support if they experience changes to their financial circumstances.

They also assist us to combat financial exclusion and prevent customers getting into a vicious cycle of debt".