Aldermore is reducing rates on its Help to Buy: mortgage guarantee offering.
The lender is replacing its existing two-year fixed rate products with a standard, non-tiered offer.
Available immediately, the new product offers:
- 4.98 per cent two-year fixed rate up to 95 per cent LTV with a fee of £999
- The previous rates were 5.99 per cent at 90 per cent LTV and 6.09 per cent at 95 per cent
- Loan size – from £25,000 to £400,000 on a capital repayment basis
Group managing director for mortgages Charles Haresnape says: “We are delighted today to be improving our Help to Buy: Mortgage Guarantee product to help borrowers with smaller deposits.
“Our new two-year rate is not tiered, with borrowers offered the same rate whether applying for a loan of 90 per cent or 95 per cent of the value of the property.
“Almost 80,000 mortgages have been completed with the support of the mortgage guarantee scheme since its launch in 2013, and it has had an extremely positive impact across the UK. Four out of five of those mortgage completions were for first-time buyers, and Aldermore is proud to support those individuals looking to buy a home.
He adds: “With rising house prices, many first-time buyers are struggling to raise the initial deposit they need to get on the housing ladder.
“With the Help to Buy: mortgage guarantee scheme set to close in December 2016, Aldermore is pleased to help as many of those looking to take advantage of the programme as possible, before the scheme ends.”