b'5.0 / Lender case studySO Resi by Metropolitan Thames Valley 5.0 / Lender case studySO Resi by Metropolitan Thames Valley5.0 / Lender case studyPhillipa Cardno Were a cautious lender but first-time buyers of shared ownership arent any different from any other first-time buyer. The risks are the same, says Cardno. And we see Operations & Sales Directorshared ownership as a low-risk transaction.Newbury Building Society So what about the future for shared ownership, does Newbury still see it as an attractive product? Yes, definitely, says Cardno.Newbury Building Society has been lending to buyers of shared ownership homes for 17 years.It started small, testing the waters to better understand the tenure. Newburys interest wasnt necessarily about high returns as profits are ploughed back into the business rather than paid out to shareholders. Phillippa Cardno, Operations & Sales Director at Newbury Building Society says shared ownership is a good model: Building societies purpose in life can be slightly different We were aware of shared ownership, and viewed it as a great way to get onto the to non-mutuals, the purpose is to help someone find a home to live and housingproperty ladder thanks to the lower deposit associations have a similar purpose, therefore, the two fit very well.requirement. Shared ownership was also Newburys involvement with shared ownership has evolved from those early tentative years.appealing due to its flexibilitythere are It could see that it was a good product and a great route into home ownership for first-timeno set times for us to staircase, so we can buyers particularly in the south where prices are high. But there was room for improvement. purchase more shares when we are in a Lending on shared ownership is more complex because there are three parties involved position to be able to. At the moment we are the lender, the housing association and the buyer. Data that Newbury gathered was used totaking things as they come, but long term our help change the leasing model in 2010 to give lenders better protection and provide clarity.plan is to staircase to 100% ownership. My view is that if you want this product to work, you need to standardise it, saysOlly and Jess / SO Resi Alford residentsCardno. Lenders dont want housing associations doing different things because you have to put too many controls and different processes to make it work - it becomes commercially unviable. Newbury also did some work around SLA agreements which are voluntary but are important to strengthen the relationship between lender and housing association and ultimately better serve the customer. Since 2010 Newbury has, to use Cardnos words put its money where its mouth is and shared ownership now represents 26% of Newburys more than 1 billion mortgage book. Its still a niche product but has seen the customer profile change. As house prices have risen more and more young professionals are buying via shared ownership and while first-time buyers still dominate, more recently there has been an increasing number of second-time buyers. 18 / Shared Ownership Market Review 2020In conjunction with Cambridge University Shared Ownership Market Review 2020In conjunction with Cambridge University / 19'