Help to Buy (phase two): Lenders ‘already offering’ better mortgages
Banks take-up of the Government’s Help to Buy scheme is ‘lukewarm’ and is unlikely to change, brokers said, after lenders unveiled rates offered under the scheme.
Brokers suggested a limited number of lenders would participate in the Help to Buy mortgage guarantee scheme as they were already offering higher loan to value deals and may feel they have enough exposure to borrowers with small deposits.
So far, just a handful of banks have announced they are taking part, including Natwest, RBS, Halifax and Bank of Scotland. Rates of 4.99 per cent are being offered by Natwest & RBS.
Jonathan Harris, director of mortgage broker Anderson Harris, said: “Take-up among lenders has so far been lukewarm and it is likely that this stance won’t change. Over the past few months a growing number of lenders have introduced high LTV deals anyway, and they may feel they have enough exposure to this area of the market already.
“The fact remains that most lenders would rather lend to borrowers with bigger deposits and without details of any capital relief available under the scheme, this position is unlikely to change.”
Help to Buy rates in review:
- RBS and subsidiary Natwest are offering H2B two and five-year fixed rate deals at 4.99% and 5.49%
- Halifax are offering a two-year fixed rate at 5.19% with a £995 product fee
- HSBC will take part later in the year (first major player with no taxpayer support to sign up)
- Virgin Money and Aldermore Bank will join from January
- Barclays and Santander UK are still considering