Help to BuyJan 3 2017

Halifax unveils Help to Buy replacement deals

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Halifax unveils Help to Buy replacement deals

Halifax Intermediaries has unveiled loans designed to support borrowers beyond the end date of the government’s Help to Buy mortgage guarantee scheme.

 The lender will offer a new range of products to borrowers with deposits of 5 per cent available from today (3 January). 

The new first-time buyer fixed rate 95 per cent LTV deals are a couple of two-year mortgages with a £999 fee and a 3.34 per cent rate or no fee with a 3.74 per cent rate plus two five-year deals.

The first five-year deal has a £999 fee and a 4.29 per cent rate and the second deal has no fee but comes with a 4.49 per cent rate.

Halifax has demonstrated its ongoing commitment to first-time buyers and home movers by maintaining its rates up to 95 per cent LTV.David Hollingworth

The homemover fixed rate 95 per cent LTV deals are two-years with a £999 fee and 3.39 per cent rate and no fee with a 3.79 per cent rate. There is a five-year deal with £999 fee and 4.44 per cent rate and no fee comes with a 4.64 per cent rate.

Ian Wilson, head of Halifax Intermediaries, said: “As a leading supporter of the Help to Buy: mortgage guarantee scheme, continuing to lend to this area of the market is a key part of our commitment to help first-time buyers on to the property ladder.

“By introducing this new range of products at the start of the New Year, we can help brokers to confidently continue supporting their clients with higher LTV borrowing needs.”

The maximum loan amount available is £500,000 and some of the previous Help to Buy policy restrictions are being removed.

For example, the Help to Buy loan to income cap of less than four-and-a-half times income will no longer apply and lending into retirement is allowed within standard policy.

Customers can also have another mortgage or property (including non-simultaneous).

Evidence of the deposit (of at least 5 per cent) will continue to be required, and can now include other government subsidies such as forces Help to Buy.

David Hollingworth, associate director of communications at broker London & Country Mortgages, said with the withdrawal of the Help to Buy mortgage guarantee at the end of 2016 it was always going to be important that lenders continued to support those with only a small deposit. 

Mr Hollingworth said: “Halifax has demonstrated its ongoing commitment to first-time buyers and home movers by maintaining its rates up to 95 per cent LTV. 

“This, and similar moves by other lenders, suggests that the high LTV end of the market will continue to provide a competitive range of product options.”

emma.hughes@ft.com