Details on Help to Buy scheme revealed
- 16th October 2013
- Buying Property News
The £12 billion scheme helps buyers with small deposits, but what rates are on offer?
Stephen Ludlow, Chairman of ludlowthompson, says, “The banks participating in the second part of the Help to Buy scheme have announced the details of their new mortgage products under the scheme.
“The biggest difference is for borrowers with a small deposit of only 5% of the property’s value. The rates for borrowers with a deposit of 10% are similar to mortgages from providers who are not participating in the scheme.”
Mortgages up to 95% loan to value
Royal Bank of Scotland and Natwest offer identical two year fixed rate loans at 4.99%, with no charges or fees. Additionally, a five year fixed interest rate is available at 5.49%.
Lloyds Group, which owns Halifax, offers a two year fixed rate at 5.19% with a fee of £995.
Mortgages from lenders that are not participating in the scheme but that will offer LTVs of up to 95% include:
- Yorkshire Bank, with 3.99% fixed rate for 3 years with no arrangement fee.
- Hanley Economic Building Society offers a 5.69% deal for 5 years with a £100 fee.
Stephen Ludlow comments: “The Help to Buy scheme is increasing competition among providers at the high loan to value end of the market, meaning some very attractive rates are available from providers who are not taking part in the scheme.
“Under any of these options, borrowers will face strict lending criteria that might mean the lender turns down their application.”
The Help to Buy scheme is increasing competition among providers at the high loan to value end of the market.
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