Recently it was the fifth anniversary of the governments Help to Buy Equity Loan, which helped borrowers to purchase a new-build home by offering a loan worth 20% of the property’s value interest free for the first five years. Borrowers who took out these loans at the start of the scheme in 2013 will now be charged interest on the loan portion, in addition to their existing mortgage on the remaining sum.
For borrowers who are looking to remortgage they have the option of moving away from Help to Buy, and paying off the loan portion of the scheme – this means they will then obtain 100% equity of the property, having a straightforward residential mortgage.
Whilst some lenders treat the repayment of the loan portion as debt consolidation, and will either not lend at all or cap the LTV, this doesn’t apply with us! We won’t treat this as debt con at all, which means all of our standard residential products are available up to 95% LTV with a £500,000 maximum loan. This means there are no specialist products, fees or charges for your post-Help to Buy clients.