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Govt eyes Help to Buy loan book sale

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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.



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