Leeds Building Society has launched a new two-year fixed rate Help to Buy mortgage at 1.50% for borrowers with a 25% deposit.
The deal is available for purchase or remortgage in England and Wales and comes with a free valuation and a £999 fee.
“Homeowners who were among the earliest to buy under the Help to Buy equity loan scheme may be coming to the end of their current deal and could switch to save themselves some money,” said Jaedon Green, Leeds Building Society’s director of product and distribution.
Help to Buy equity loan homeowners can remortgage with Leeds Building Society and retain their existing loan size, subject to valuation, keeping the government equity loan.
Alternatively, they can choose to redeem the government equity loan as part of their remortgage up to 90% LTV and buy the property outright, using any one of the Society’s mortgages available up to 90% LTV.
Thousands of borrowers who used the Government’s Help to Buy equity loan scheme can benefit from falls in mortgage rates since they bought their homes.
Home owners who bought soon after the scheme was launched may be looking to remortgage as their existing deal matures in the coming months.
If you borrowed £150,000 two years ago for 25 years at the average of 2.83%, your monthly repayment is £697.58.
By remortgaging now for the remaining 23 years with a balance of £141,500 at 1.50% would bring the monthly repayment down to £606.23.
This would give you a potential saving of £91.35 each month or an overpayment which could cut the overall term of your mortgage.
With the Help to Buy equity loan scheme you can borrow up to 20% of the purchase price of a new-build home. The loan comes from the government and is repaid when the property is sold. The rest of the payment is made up with a deposit of at least 5% and a mortgage of up to 75%.
The London Help to Buy scheme provides an equity loan of up to 40% for buyers in the capital with a 5% deposit. It is open to both first-time buyers and those looking to step up the housing ladder.
What Mortgage has teamed up with London & Country to offer you expert advice on the right mortgage deal.
Whether you’re buying a new home, remortgaging to a new deal or buying an investment property, L&C can help – and you’ll pay no fee for their advice. To find out more, click here.
