MortgagesFeb 1 2016

Teachers launches Help to Buy London deal

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Teachers launches Help to Buy London deal

Teachers Building Society will offer a Help to Buy London deal, which provides an equity loan of up to 40 per cent for buyers trying to get on the property ladder in our capital.

The lender is offering a discounted variable rate of 1.99 per cent for the first two years, which then changes to a standard variable rate, currently 4.99 per cent, for the remainder of the term.

The overall cost for comparison is 4.6 per cent with an £899 arrangement fee and a £99 application fee.

Additionally, an early repayment charge is applicable and there is a maximum house cap of £600,000.

Andy Yates, business development manager at Teachers Building Society, said: “At Teachers Building Society we welcome any initiative which helps teachers get onto the property ladder.

“In London, high property prices mean it can be difficult for teachers to purchase a home, or to move up the property ladder.

“This scheme, together with our specialist lending criteria for teachers (around levels of affordability and lending to Newly Qualified Teachers) will help London Help to Buy be as successful as we have found the national Help to Buy scheme to be.”

Andrew Montlake, director at Coreco Mortgage Brokers, said on the face of it this is a scheme that not only gives builders confidence to build more, but will help a good number of borrowers struggling to find an ever-larger deposit the opportunity to finally buy.

He said: “Teachers Building Society is a very important lender for this section of the workforce and it is pleasing to see that they have joined the scheme at inception and help to provide another option for Teachers in the capital, many of whom may have given up hope of getting their own home.

“It will, however, still be an affordability challenge for many, especially at the lower end of the earnings ladder and my concern is that, with social housing being decimated, there is still very little being done for those key workers that London needs to thrive.

“These schemes are all well and good but they do not solve the more serious deep-rooted housing problems we have in the capital of a lack of affordable housing for all.”

ruth.gillbe@ft.com