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Dear Partner We’ve been a proud supporter of the Government’s Help to Buy Guarantee and Equity Loan schemes for a long time. And we’re pleased to announce that we have extended our support to offer loans under both the Help to Buy London and Help to Buy Scotland Equity Loan Scheme rules, alongside those offered in the rest of England and Wales. We want to make it easier for your first and next time buyers to purchase a new build home with as little as a 5% deposit. Available Nationally Through our commitment to the Government’s new build initiatives, we have launched a new range of products designed to suit the needs of customers looking to purchase a home through an Equity Loan Scheme. Take a look at our new range of 2 and 5 year fixed rate deals:
- 2 year fixed rates at 55% LTV with a £995 fee available from 1.78%, with fee saver options available from 2.15%. All deals come with £500 cashback.
- 5 year fixed rates at 55% LTV with a £995 fee available from 2.40%, with fee saver options available from 2.75%. All deals come with £500 cashback.
- 2 and 5 year fixed rates remain available at 75% LTV, with £995 fee deals available from 1.79% and fee saver options available from 2.38%.
- Stamp Duty Buster 2 and 5 year fixed rate products at 75% LTV with a £995 fee start from 2.84%. These come with £2,500 cashback.
Your customers who have larger deposits can also apply for the lower LTV deals, which could help next time buyers who have equity in their existing property. Help To Buy Scotland
In addition to our national deals, we also offer a range of 80% LTV products with cashback exclusively for Help to Buy Scotland Equity Loan Scheme customers. These include 2 year fixed rates with a £995 fee available from 2.04% and fee saver options available from 2.60%. Affordability Policy
What’s more, we have recently improved our affordability policy meaning we’ll now offer more of your new build and Help to Buy Equity Loan customers the loan amount they need. We’ve also enhanced the way we calculate the Help to Buy Government fees as part of your client’s monthly financial commitments, now 3% of the equity loan, reduced from 4%. Sourcing systems
New Help to Buy Equity Loan products will be available on sourcing systems from Wednesday afternoon. Please remember to run an update to make sure our new deals are visible. Help to Buy Equity Loan schemes at a glance | Government scheme | Minimum buyer’s deposit | Government loan up to | Mortgage from lender up to | Maximum property value | | Help to Buy England | 5% | 20% | 75% | £600,000 | | Help to Buy London | 5% | 40% | 75% | £600,000 | | Help to Buy Scotland | 5% | 15% | 80% | £230,000 | | Help to Buy Wales | 5% | 20% | 75% | £300,000 |
Customers taking a Help to Buy Equity Loan can borrow up to a maximum of 95% LTV in total from their lender and the Government. We are proud to support new build and here’s how we do it:
- Deals from our core purchase range available up to 85% LTV for new build houses and 75% LTV for new build flats.
- We accept cash incentives up to 5% and unlimited non-cash incentives*. Any incentive, whether cash or non-cash, cannot be more than 5% of the purchase price of the property for Help to Buy cases.
- New build offers are valid for six months and we will offer an extension if needed subject to criteria.
| | For full details of our current range, please view Mortgage Update Issue 94. To take a look at our lending policy, visit our website. For any other queries you may have, your dedicated Business Development Manager will be happy to help. | Yours sincerely
The Virgin Money Intermediary Team |
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