Back to February 2017

Help to Buy Equity Loan still important part of mortgage mix

Leeds Building Society is continuing to see strong demand for Help to Buy Equity loan mortgages.

The Society was among the first lenders to join the Help to Buy Equity loan scheme after its launch in 2013 and in 2015 became the first lender to accept remortgage applications from Help to Buy Equity loan borrowers[i].

The latest addition to the Society’s range of Help to Buy Equity loan mortgages is a 2.29% two year fixed rate fees assisted deal with £1,000 cashback.

This is available in England and Wales up to 75% LTV (loan to value), through intermediaries only. The deal includes a free valuation and has a low £199 fee.

“With a generous cashback offer, low fee and a free valuation we’d expect this latest deal to attract existing Help to Buy homeowners who may be looking to remortgage to a better deal,” said Jaedon Green, Leeds Building Society’s Director of Product and Distribution.

“The Help to Buy Equity loan scheme has been successful in meeting its twin aims and we’re happy to go on supporting this with the aim of helping even more borrowers.

“First, the initiative has enabled borrowers, many of them first time buyers, to have the home they want.

“Secondly, it’s also stimulating the new build market and encouraging developers to increase the nation’s housing supply, which is badly needed.

“In this way, Help to Buy Equity loans can be a useful option for affordable housing borrowers who are not well-served by the wider market, alongside other types of lending such as shared ownership, Right to Buy, discounted purchase price schemes, and interest only, including part and part mortgages.

“We lend in all these segments, as well as offering higher LTV traditional mortgages and our award-winning Welcome Mortgage[ii], with 0% interest at the start of the loan – we’d recommend borrowers seek advice from their broker to explore which of these types of mortgage best suits their individual needs and circumstances.

“In addition, many of the original Help to Buy purchasers will be coming to the end of their initial deals and it’s almost two years since we were the first to start offering remortgages for these borrowers.

“Rates have fallen even further since the scheme was launched so it’s definitely worthwhile for borrowers to check whether switching to a better deal could bring down their monthly repayments, or even help them to pay off their mortgage sooner and save thousands in the process.”

 

[i] Help to Buy Equity loan remortgage – homeowners can retain their existing loan size, subject to valuation, and keep the Government equity loan. Alternatively, they can redeem the Government equity loan as part of the remortgage up to 90% LTV and buy the property outright (choosing any of Leeds Building Society’s mortgages which are available up to 90% LTV).

[ii] Leeds Building Society’s Welcome Mortgage is available up to 85% LTV and offers borrowers the choice of three or six months at the start of the home loan where they pay 0% interest.

 

Ends

Notes to Editors

Key Features

Introduced only English Help to Buy Cashback Fees Assisted Fixed Rate mortgage at 2.29% up to and including 30th April 2019:

  • 2 Year Fixed Rate Help to Buy Equity Loan fees assisted mortgage at 29% up to and including 30th April 2019
  • Available up to 75% LTV
  • £1,000 cashback
  • Free valuation
  • Low £199 completion fee
  • Introduced only

Introduced only Welsh Help to Buy Cashback Fees Assisted Fixed Rate mortgage at 2.29% up to and including 30th April 2019:

  • 2 Year Fixed Rate Help to Buy Equity Loan fees assisted mortgage at 29% up to and including 30th April 2019
  • Available up to 75% LTV
  • £1,000 cashback
  • Free valuation
  • Low £199 completion fee
  • Introduced only

To discuss a new case with one of our mortgage development team, mortgage introducers should go to www.leedsintroducer.co.uk to find details of their nearest Business Developer contact.

Leeds Building Society won the awards for Best Building Society Savings Provider and Innovation in Personal Finance (Part and part mortgages) at the 2016 Moneyfacts Awards.

Leeds Building Society operates throughout the UK, Gibraltar and Ireland and has assets of £14.9bn (at 30th June 2016). The Society’s head office has been based in the centre of Leeds since 1886.