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Remortgage rates for post-Help to Buyers

Two government backed housing schemes were launched in 2013 to help first time buyers and those struggling to get on the property ladder.

Background to Help to Buy
The government’s Help to Buy: Equity Loan scheme was designed to assist people in buying a newly built home. With just a 5 per cent deposit required, the government offered a loan of up to 20 per cent, meaning that just a 75 per cent mortgage was required which enabled buyers to access more attractive mortgage rates.

Phase two of the scheme, the Help to Buy: Mortgage Guarantee scheme, was not restricted to new builds, and encouraged mortgage lenders to offer home buyers competitive rates with just a 5% deposit by giving a government guarantee on 15 per cent of the loan. This meant mortgages were generally available for larger amounts, and at more competitive rates, than they might have done ordinarily based on the size of the deposit.

April 2018 marks the five year anniversary of Help to Buy. Borrowers who took advantage of the scheme when it first launched, may now be reaching the end of their fixed-rate mortgage term. As is the case with the end of any mortgage term, these borrowers will automatically be switched to their lender’s standard variable rate so should ideally be looking to remortgage in order to keep their monthly payments lower.

In addition, only the first five years of the 20 per cent loan offered as part of the Help to Buy: Equity Loan scheme are interest free: interest fees are payable from the sixth year at 1.75 per cent of the loan’s value, and will increase every year in line with the Retail Price Index, plus 1 per cent. In particular, it is these Help to Buyers who may see their total monthly payments increase most drastically unless they take action.

Although some lenders do not offer any remortgaging options to those with a Help to Buy mortgage, Ipswich Building Society is pleased to confirm that for those wishing to move away from the Help to Buy scheme, and acquire 100% of their property’s equity,  all of our standard remortgage products are available up to 95% loan to value subject to our usual affordability criteria.

Our post-Help to Buy Remortgage Products

Unlike some other mortgage providers, we operate a manual underwriting system which means we take a very personal approach to lending: our mortgage consultants (rather than a computer) take your individual circumstances into account when we make our lending decisions.

Our mortgage products are available to direct applicants in England and Wales and via intermediaries based in, Suffolk, Norfolk, Essex, Cambridgeshire, Bedfordshire, Hertfordshire and Buckinghamshire. Please check the individual remortgage product details for availability.

YOUR HOME MAY BE REPOSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Your home may be repossessed if you do not keep up repayments on your mortgage.