Re-mortgages and Help to Buy
Everyone has now heard about the new Help to Buy Mortgage Guarantee Scheme – not many people are aware that re-mortgage deals are also available under the Help to Buy scheme.
This means that borrowers with less than 15% equity in their home are now in a position to re-mortgage to a more competitive rate using the H2B Mortgage Guarantee Scheme.
The first lender to launch into the Help to Buy Mortgage Guarantee market is now offering a 4.29% fixed rate for borrowers with at least 10% equity.
This is extremely good news for existing borrowers who may be ‘trapped’ on standard variable rates of 4.79%, 4.99%, or even 5.79% or 5.99%.
Whereas last month there would have been no sensible re-mortgage product options, a borrower with a £150,000 mortgage can now be looking to save up to £200 a month in interest.
What is more, this product comes with no product fee, free legals, and free valuation.
The free valuation is a key benefit as if your valuation does not mean your intended figure this is at the lenders risk.