View more on these topics

Govt eyes Help to Buy loan book sale

Money, cash, calculator

The Government wants to sell its £7.4bn book of Help to Buy equity loan scheme mortgages and is speaking to investors.

The Financial Times reports that the Government is keen to offload the portfolio by November and is in talks with large asset managers.

Help to Buy loans have no interest on the Government portion of the loan for five years.

This means that from this April the first batch of the loans, sold in 2013, will begin paying interest on this portion, making them of interest to buyers.

However, an FT source says investors may be reluctant as the level of future returns is uncertain.

Mortgage Strategy recently reported that those looking to remortgage away from the Help to Buy scheme may struggle due to a limited number of lenders. 

The Government says 28 lenders accept HTB equity loan applications. These include high-capacity firms such as Barclays, Halifax, Nationwide, NatWest and Santander.

However, only ten offer a like-for-like HTB remortgage, with the largest lenders being Barclays and Halifax. The rest include smaller lenders such as Mansfield, Newbury and Newcastle building societies, as well as mid-sized lenders Leeds, Skipton and TSB.

Recommended

Home-House-Money-Property-700x450.jpg

Hanley Economic launches Help to Buy remortgage

    Hanley Economic Building Society has launched a two-year discounted remortgage product for Help to Buy borrowers. The product has an initial two-year discounted pay rate of 1.94 per cent. It offers Help to Buy borrowers a remortgage option to remove the equity element of the loan and effectively take ownership of the whole […]

House-Home-Property-Ladder-Mortgage-700x450.jpg

News Analysis: Help to Buy remortgage customers ‘could struggle for choice’

Lenders’ restricted appetite for Help to Buy remortgages means borrowers face higher prices and limited choice as they start to move off the scheme in just two months’ time. Some even risk becoming mortgage prisoners, experts say. The Government says 28 lenders accept HTB equity loan applications. These include high-capacity firms such as Barclays, Halifax, […]

House-and-Calculator-Mortgage-Property-700.jpg

Help to Buy equity loan scheme set for record year

The Government’s flagship Help to Buy equity loan scheme is on track for a record year in 2017. Figures published by the Ministry of Housing, Communities and Local Government show that more than 32,000 new build homes were purchased using one of these Government-subsidised loans in the first three quarters of last year. This compares […]

Newsletter

News and expert analysis straight to your inbox

Sign up