Kensington has launched a Help to Buy Equity Loan mortgage range for first-time buyers and home movers across England and Wales.
Borrowers can choose from a two-year fix at 3.64 per cent, a three-year fix at 3.99 per cent and a five-year fix at 4.24 per cent.
Available at 75 per cent loan-to-value (LTV), the products come with a fee of £999, free valuations and no interest payable for the first five years on the equity loan.
The maximum loan amount is determined by the maximum property value available on the Help to Buy scheme, which is currently £600,000 for England and £300,000 for Wales.
Help to Buy equity loans provide up to 20 per cent of the cost of a newly built home, meaning borrowers need a 5 per cent cash deposit and a 75 per cent mortgage to cover the remainder.
Kensington has also updated its Residential New Build range, with five-year fixed rates now available from 3.74 per cent at 75 per cent LTV.
Steve Griffiths, director of sales and distribution, The Northview Group, said: “The government’s Help to Buy scheme is fundamental in helping many first-time buyers take their first steps onto the property ladder.
“However, whilst standard borrowers can easily access these loans from the high street, it’s also important that the specialist market improves the choice of Help to Buy mortgages for borrowers with complex sources of income.
“This is precisely why Kensington have launched this range today, giving customers both improved choice and a highly competitive deal when buying a new build property.”
Kevin Hever, helper and adviser at Wolverhampton-based Cornerstone Financial, commented: “If you are using Kensington, there may be some credit issues there – it is more out of necessity to use a lender like them – but for what they do, they do sound like good rates.”
simon.allin@ft.com
