95% Halifax Mortgages for Help To Buy 2 Mortgage Guarantee Scheme
It has been an exciting week as more and more lenders scramble to grab headlines by expressing their willingness to participate in the Help To Buy 2 Mortgage Guarantee Scheme. We have heard that Aldermore, Barclays, Halifax, HSBC, Lloyds, NatWest, RBS, Santander and new lender TSB will take part.
The funds for the Help to Buy 2 Mortgage Guarantee Scheme are not actually available for drawdown until January 2014 so the majority of lenders above are saying they will launch their products then. This will give them a greater time to sort out internal processing systems and also to finalise their negotiations with Government over their capital adequacy concerns. The latter is a particular issue as the Government brought in extra reserve requirements for higher loan-to-value lending post credit crunch and are now having to allow lenders to fudge the accounts so this contradictory new scheme can get off the ground.
Halifax is leading the charge with 95% mortgages for the Help To Buy 2 Mortgage Guarantee Scheme already on the shelves.
Halifax Help To Buy 2 Mortgage Guarantee 95% Products Reviewed
Halifax of course is probably the most recognisable mortgage brand in the UK and under the greatest pressure to support the Government following their high profile bail out amidst the credit crunch.
They have therefore come out of the blocks fast.
Example of Halifax Help To Buy 2 Mortgage Guarantee 95% Products
Based on a purchase price of £200,000 and a repayment mortgage of £190,000 over 25 years.
The main early repayment charges are 3% of the amount repaid to 31/12/2014, then 2% until 31/12/2015.
Products below are current as at 11 October 2013:
Product One: 2 Year Fixed – Medium Arrangement Fee
Initial pay rate 5.19% (APR 4.4)
Valuation Fee £355 / Arrangement fee £999
Fixed at £1,137.81 per month until 31/12/2015. After this period the mortgage will revert to the lender’s variable rate at the time. Based on today’s prices this would be £1,015.27 per month.
Product Two: 2 Year Fixed – No Arrangement Fee
Initial pay rate 5.59% (APR 4.4)
Valuation Fee £355 / Arrangement fee £Nil
Fixed at £1,177.00 per month until 31/12/2015. After this period the mortgage will revert to the lender’s variable rate at the time. Based on today’s prices this would be £1,012.45 per month.
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(Please make sure you also have an up-to-date Equifax Credit Report ready to email to us. To get your Free Report please click on the link image)
For more information on our range of Help to Buy scheme products please complete the enquiry form on the right-hand side of this page or alternatively call us on (020) 7993 2044.
Payam Azadi is a partner at Niche Advice Ltd who are Independent Financial and Mortgage Advisers in London.
DISCLAIMER
The views expressed in this article are based on my own personal general opinions and experiences, and they are not necessarily shared by Niche Advice Limited or other Mortgage Brokers. Rates correct as of 12/10/2013
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines. To get in contact with him please click here.
