The Mortgage Lender has launched its first range of Help to Buy mortgages for borrowers buying a new build home in England, Wales and Scotland.
Its products are available to the whole of market and across Real Life (RL) categories one to six. There is a maximum Loan to value of 75 per cent with a minimum 5 per cent borrower deposit and its rates start at 3.64 per cent for a two-year fix.
The Help to Buy: Equity Loan scheme offers borrowers a Government funded deposit of up to 20 per cent for properties in England, Wales and Scotland and 40 per cent in London. The deposit, or equity loan has no repayments for the first five years of the loan.
The scheme is available to buyers of new build properties where the developer is a registered Help to Buy home builder.
The Mortgage Lender deputy chief executive Peter Beaumont said: “Help to Buy has opened up the new build property market to a whole new generation of homeowners and it’s working.
“For us it’s an area of the market that fits who we are as a lender. We want to help people live in the home they can afford and be pragmatic about borrower circumstances, understanding that life doesn’t always move in the ways we expect.
“Our Help to Buy range gives brokers a competitive and flexible product range that is tailored to the needs of their customers.”
There is a free valuation across the range and a completion fee of £995 for RL 1 to 4 and £1495 for RL 5 and 6.
Help to Buy product rates
|2 year fixed||75%||3.64%||3.74%||3.90%||4.04%||4.54%||5.05%|
|5 year fixed||75%||4.30%||4.35%||4.54%||4.70%||5.20%||5.24%|
The scheme is set to run until 2023 in England and Scotland and there is currently no end date for schemes in Wales and London.