Homeowners who were among the first to purchase their properties under the government’s Help to Buy equity scheme are being offered two new remortgage deals from Leeds Building Society.
The society is offering two new three-year fixed rate deals at 2.54 per cent up to 75 per cent loan-to-value, with a £999 fee, and at 2.79 per cent up to 75 per cent LTV, with a £199 fee.
Each comes with a free valuation, for properties worth up to £500,000, and fees assisted legal services, and both are available through intermediaries.
These two new deals are in addition to the society’s existing Help to Buy mortgages, which are available for remortgage as well as home purchase.
Earlier this year the society was the first lender to accept re-mortgage applications from Help top Buy equity borrowers.
Martin Richardson, general manager for business development at Leeds Building Society, said: “A lot of the first Help to Buy borrowers will have chosen a two-year fixed rate mortgage back in summer 2013 so may be looking for a competitive deal to remortgage to.
“The interest-free loan from the government will have another three years to run before borrowers have to start to pay interest on that portion, so a three year remortgage deal makes sense.
“While mortgage rates are currently so low, and with the ongoing discussions about when the Bank of England will finally raise the base rate, we are seeing strong demand for remortgages and we try to include different fee options for borrowers to find the deal which suits them best.”
Leeds’ deals comes after last month HM Treasury confirmed that six lenders have signed up to the Help to Buy Isa scheme, which will be available from 1 December 2015.
Nationwide, Barclays, Lloyds Banking Group, Natwest, Santander, and Virgin Money will all be offering the new Help to Buy Isa.
It was in March that chancellor George Osborne announced the launch of a new Help to Buy Isa.
emma.hughes@ft.com|
