Barclays will launch a shared equity product ranges on 1 February to support the London Help to Buy Scheme.
NatWest will also be opening up its existing two- and five-year fixed rate shared equity deals to the scheme.
The new Barclays range is:
- Two-year fixed fee free at 1.85 per cent
- Two-year fixed rate at 1.5 per cent with £999 fee
- Five-year fixed at 2.19 per cent with a £999 fee
- Five-year fixed fee free at 2.49 per cent
Barclays says its new range is for qualifying borrowers buying a property in London who will be able to apply for an equity loan of up to 40 per cent LTV from the Help to Buy scheme.
Homebuyers and movers will need a 5 per cent deposit, meaning that a 55 per cent LTV mortgage is required.
The maximum loan will be £330,000 and will have an extended end date of June 2018 / June 2021 respectively.
Barclays director of mortgages Craig Calder says: “Our new market leading range of shared equity products to support the London Help to Buy scheme is designed to help more hard-working first time buyers to achieve their ambition of home ownership in the capital, and supporting those needing to move to their next home.
“The gap between income and house prices is at its widest in London, which is why Barclays is committed to supporting the new ‘London Help to Buy’ initiative and providing other innovative ways to help even more people to afford a home in London.”
NatWest’s shared equity products are a two-year fixed rate at 2.63 per cent and a five-year fix at 3.39 per cent.
NatWest Intermediary Solutions head Graham Felstead says: “We have been a long time supporter of the Government’s shared equity schemes and are happy to be able to inform brokers and their customers that we’ll be able to accept applications from London-based customers looking to buy their first home from February 1st. This is a great extension to a scheme which has already had a great impact on first time buyers.”