I am pleased to let you know that tomorrow, we are launching two new 95% LTV purchase mortgages that will replace the current 95% LTV deals being offered as part of the Help to Buy: mortgage guarantee scheme, which is coming to a close at the end of the year. The two new deals, which will be added to our core range, are:
2 year fixed rate purchase – 3.69% (APRC 3.8%, SVR 3.75%), £0 product fee [FO13572]
5 year fixed rate purchase – 4.59% (APRC 4.2%, SVR 3.75%), £0 product fee [FO13573]
These deals are priced the same as our existing 95% HTB products, however I am pleased to say that by having these as stand alone products we have removed the constraints of the HTB scheme…
- These products are available to first-time buyers and existing home owners who are buying properties for residential purposes.
- The maximum property value is £600,000 (giving a maximum loan of £570,000)
- There’s no limit on the amount of income an applicant can earn and repayment must be on a capital and interest basis only.
- Property being purchased does not require to be the applicant’s main residence e.g. it can be a second home
- Customers are permitted to own or have an interest in other properties after completion e.g. buy-to-let
- We will allow consent to let where applicable
- Further advances are allowed (previously not allowed for 7 years under HTB)
Overpayments:
Up to 10% of the outstanding balance per annum are allowed during the initial deal period.
Early repayment charges:
2 year fixed rate: 2% until 31 January 2018, 1% until 31 January 2019
5 year fixed rate: 5% until 31 January 2018, 4% until 31 January 2019, 3% until 31 January 2020, 2% until 31 January 2021, 1% until 31 January 2022
Minimum loan amounts:
£25,000
(Please note that our new build shared equity schemes are still in place – this is only for the mortgage guarantee scheme)
