Skipton Building Society is launching a new range of products aimed at borrowers looking to leave a Help to Buy mortgage.
The ‘Hexit’ range includes two-, three- and five-year remortgage products and comes with £1,000 cashback. It is available to all remortgage borrowers, not just those on Help to Buy deals.
The products are all fee-free and include up-front valuations. The range features a two-year fixed at 2.75 per cent at 90 per cent LTV and a five-year fixed rate at 2.64 per cent at 85 per cent LTV.
The Help to Buy: shared equity scheme was introduced in April 2013 and included an equity loan from the government worth up to 20 per cent of the purchase price.
These loans were interest free for the first five years, but after that incur interest, initially at 1.75 per cent of the size of the equity loan.
The new range launches tomorrow.
Skipton Building Society head of products Kris Brewster says the Help to Buy scheme has made a big difference to homebuyers, but that now is an important time for those initial borrowers to begin reviewing their options.
He adds: “Clearly, there will be Remainers and Leavers in this first round of ‘Hexit’. While for some, it might be better to stay with Help to Buy in the short term, others may benefit in the longer term by switching their mortgage and paying off their equity loan.
“Homeowners may wish to consider the long term benefits of exiting their Help to Buy mortgage bearing in mind the interest payments on the equity loan will rise and by paying off the loan early, homeowners can lock in the full benefit of any future house price growth.”