Help to buy – new lower mortgage rates

Help to Buy House

Help to Buy

Help to Buy Options increase

Since the launch of the Government Help to Buy Scheme a few weeks ago mortgage lenders have been slow to get on board and offer mortgage product.

Under the scheme the applicant (when buying a selected newly built home) puts down a 5% cash deposit and the Government offers a 20% interest only loan to assist the purchase, leaving just 75% of the purchase price to be covered by mortgage.

When the scheme first went live we had one major lender offering a help to buy mortgage product within a week of the launch date, but other lenders offering pricing competition were conspicuous by their absence. Slowly more interest trickled in but up until today help to buy mortgage rates have been in the 4.5% range which we consider a little pricey for what is in effect a 75% loan to value mortgage.

Today however, we are pleased to announce that another of our major lenders has taken the plunge and is offering help to buy mortgages, this time from 3.15% fixed with no product fee.

This has injected some competition into the help to buy market and perhaps over the summer we will see the sort of take up, particularly by first time home buyers, that we initially expected when the help to buy scheme was introduced in this years’ budget.

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