Help to Buy Mortgage rates (Equity loan)

spriggsy

I’ve done loads of research in this area so I’m up to speed with how H2B works, however the thing that’s puzzling me is the mortgage rates and the lenders that offer them.

The rates I’ve seen seem fairly high considering that with H2B We’d only be taking out a 75% LTV mortgage. Is this because the lenders that are involved are only offering limited mortgage types for H2B, or am I missing a trick?

For example, see http://www.moneysupermarket.com/mortgages/help-to-buy/ where the Max LTV is shown as 95% and the rates seem a lot higher. Why wouldn't they advertise 75% LTV mortgages, or are these not offered on the scheme?

Has anyone else used the scheme and did you get a good rate?

Any help on this is greatly appreciated.

Matt

GlamGirlie

We used the equity scheme and got 4.19% fixed for 2 years with Halifax, albeit Halifax no longer offer the equity scheme.

We did want a 5-year fix with Nationwide but we waited 3 weeks for AIP then gave up..... Halifax gave us AIP within 2 hours!

There is definitely only a limited selection of h2b equity offers out there sadly.

coco21

I got a 75% equity loan from Abbey/Santander 3.64% 5 yr fix.

kingstreet

GlamGirlie wrote: »

We used the equity scheme and got 4.19% fixed for 2 years with Halifax, albeit Halifax no longer offer the equity scheme

Yes they do.

Max loan is £150k and subsequent purchasers have to use a branch only as this is no longer available to brokers for such buyers.

On the rates issue I've just done a sourcing report for an HTB - EL case and the rates range from 2.64% to 3.99% on two to five year fixed rates. These are based on 20% equity loan and min 5% deposit.

miniman_2

kingstreet wrote: »

Yes they do.

Max loan is £150k and subsequent purchasers have to use a branch only as this is no longer available to brokers for such buyers.

On the rates issue I've just done a sourcing report for an HTB - EL case and the rates range from 2.64% to 3.99% on two to five year fixed rates. These are based on 20% equity loan and min 5% deposit.

Sorry to hijack the thread but I'm in exactly the same situation. I understand that under Help to Buy Equity Loan scheme I put a deposit of 5% and the government lends me 20%. I would then need a 75% LTV mortgage but is there anywhere where there is a list of all the mortgage rates and terms available from the lenders that do offer this without having to go to each one separately?
Also is the 75% mortgage fixed to 4.5 x income like I have read some places?

ethank

Some lenders have specific HTB products and some lenders let you pick a product for the HTB you need.

Nationwide were brilliant, we got 2.44% on ours. Although we would not qualify for it now as we were a second time buyer.

miss_sparkle

We are going through an application with nationwide atm, they have lifted all help to buy restrictions so they are lending to home movers again, not just first timers & have a £600k limit on the purchase price unlike halifax £150k

kingstreet

miss_sparkle wrote: »

We are going through an application with nationwide atm, they have lifted all help to buy restrictions so they are lending to home movers again, not just first timers & have a £600k limit on the purchase price unlike halifax £150k

The Halifax limit is £150,000 mortgage, not £150,000 purchase price.

It is true Nationwide is lending to HTB - EL subsequent purchasers again.

miniman - the broker sourcing tools list HTB - EL products, so use a broker if you don't want to conduct the research yourself.

It's a 5% minimum deposit. You can our down more, as long as you borrow at least 25% of the purchase price.

Finally, the 4.5 x income, 45% debt to income restrictions are the HCA calculator restrictions, not those of a lender. Many lenders will lend more than the Government considers affordable. Remember when using lender affordability calculators to factor 3% or 4% of the equity loan in (based on lender selected) to ensure you don't over-estimate your borrowing power. Any ground rent & service charges should also be taken into account.