Nicola, Underwriting Team Leader
The Help to Buy Equity Loan scheme has assisted hundreds of thousands of first and second time buyers looking to purchase a new home.
The scheme, which allows borrowers to make use of a five-year interest-free loan of 20% of the value of a property, has helped fund more than 220,000 property purchases with nearly £12.5 billion lent in equity loans since its launch in 20131.
But what happens when the interest-free period comes to an end and the interest starts to kick in, potentially adding hundreds of pounds onto customers’ repayments?
As the UK’s leading specialist lender2, we’re always thinking of new ways to help borrowers become established homeowners so I’m excited to announce that we’re now one of the first specialist lenders to offer homeowners the option to remortgage and capital raise to repay part of their original Help to Buy Equity Loan, as well as choices for those after more standard remortgages.
This could be suitable for customers who want to remortgage to repay the existing mortgage only and leave the Help to Buy Equity Loan as an ongoing commitment.
If your customer wants to remortgage to repay their existing mortgage and raise capital to repay a specified percentage of the Help to Buy Equity Loan amount, this could be the ideal solution.
For customers who want to remortgage and repay all of their existing Help to Buy Equity Loan.
It’s all backed up by a dedicated Priority Processing Team which is dedicated to assessing cases within 48 hours and making offers within 21 days, as well as providing support and regular progress updates.
To make it as easy as possible to submit your cases, we’ve kept the application process simple, and our Residential Mortgages Affordability Calculator now allows you to calculate the interest payment on your customer’s Help to Buy Equity Loan.
To find out more, click here to read our Help to Buy Remortgages factsheet. If you’d like to find out more about our range of Help to Buy Scotland products, click here to read about our criteria and products.
If you’d like to find out more or have got a question, speak with a member of our Sales Team or call our dedicated support service on 0800 114 6435.
Sources: 1 https://www.gov.uk/government/statistics/help-to-buy-equity-loan-scheme-statistics-april-2013-to-31-march-2019-england
2 BVA BDRC Project Mercury Report Q2 2019