Nationwide Building Society has started accepting mortgage applications for borrowers looking to participate in the shared equity part of Help to Buy.
Applicants have access to a 2.54 per cent two-year fixed rate – 2.44 per cent for existing borrowers – up to 75 per cent LTV, with a £900 fee and a £99 booking fee. First-time buyers pay a reduced fee of £400.
There is also a 2.94 per cent – 2.84 per cent for existing borrowers – two-year fixed rate up to 75 per cent LTV which does not have a product fee but does have a £99 booking fee.
Nationwide is also offering a 2.64 per cent three-year fixed rate – 2.54 per cent for existing borrowers – up to 75 per cent LTV. There is a £900 product fee, which is reduced to £400 for first-time buyers, and a £99 booking fee.
In the March Budget chancellor George Osborne launched two measures, known as Help to Buy, to build on existing mortgage indemnity and shared equity schemes NewBuy and FirstBuy.
The £3.5bn shared equity part of Help to Buy was launched in April and will carry on over the next three years in order to support up to 74,000 more homebuyers. This is an extension of the £500m shared equity scheme FirstBuy, where borrowers with a 5 per cent deposit can access a 20 per cnet equity loan to gain access to a lower LTV rate. The mortgage indemnity element of Help to Buy, which was revealed by Mortgage Strategy in January, will launch in January.
Nationwide head of group mortgages Tracie Pearce says: “We are accepting Help to Buy applications as we are keen to support the Government’s efforts in helping the mortgage market to move forward.”
“It is another way that Nationwide customers can access great deals to help them onto – or move up – the property ladder.”
Your Mortgage Decisions co-owner Dominik Lipnicki says: “The more lenders who enter into these initiatives, especially the larger ones like Nationwide, and put up products the better since it inspires greater competition in the market.”
Separately, the building society increased the amount borrowers can overpay on their mortgage each year to 10 per cent of their original balance. Previously, borrowers were only allowed to overpay by a maximum of £500 a month, regardless of the size of the loan.