With more than 220,000 properties purchased and nearly £12.5bn lent in equity loans since the launch of the Help to Buy Equity Loan Scheme in 2013*, there are now a growing number of borrowers who are likely to need the support of a financial intermediary.
As interest becomes payable on the government equity loan after the initial five-year interest free period ends, and, in many cases, with borrowers seeing their initial mortgage rate come to an end, Precise Mortgages has enhanced its Help to Buy proposition and now offers homeowners the option to remortgage and capital raise to repay part of their original Help to Buy Equity Loan.
The enhancement is part of the lender’s wider Help to Buy proposition which now gives customers the option to purchase, choose a pound-for-pound remortgage, capital raise to repay part of the equity loan or fully repay their loan.
With a dedicated service proposition, the specialist lenders’ Help to Buy products support customers underserved by the high street, including those with less than perfect credit histories. As Help to Buy capital raising will be new to many intermediaries, they’ve produced a comprehensive guide to remortgaging and capital raising for Help to Buy which can be downloaded from their website.
Group Managing Director for Precise Mortgages Alan Cleary said: “The Help to Buy scheme has been a huge success since its launch in 2013, helping hundreds of thousands of aspiring homeowners take their first step onto the property ladder.
“Our new simple and straightforward capital raising option could help these customers by allowing them to remortgage and repay part of the Equity Loan which will become payable after the initial five-year interest free period ends.”
Source: * https://www.gov.uk/government/statistics/help-to-buy-equity-loan-scheme-statistics-april-2013-to-31-march-2019-england