Skipton Intermediaries has launched an 'Hexit' calculator to support brokers as they guide Help to Buy (HTB) customers on their next move in the mortgage market.
The Help to Buy Refinancing Calculator is available for brokers to download following the fifth anniversary of the government’s HTB scheme, when many customers will start paying interest on the government equity part of their mortgage loan.
Brokers are now being given access to the Skipton calculator to help clients who are considering their options, including moving away from HTB.
The calculator projects the future size of the equity loan if it is not repaid and compares monthly mortgage and equity interest payments in different repay or retain scenarios.
Alex Beavis, senior products manager for mortgages at Skipton’s said: “As people’s circumstances vary we felt we should provide the tools to help homeowners make a decision regarding their future mortgage loan plans.
“We’ve created an industry-first Help to Buy Refinancing calculator, which enables brokers to explore the different repayment options for their clients regarding their equity loan.
“Brokers can input figures supplied by customers, including present monthly payment figures, length of mortgage and present house values, and the calculator will present different scenarios from which the brokers can advise.
“Once the figures have been inputted, some homeowners may wish to take a higher monthly mortgage in a bid to pay back the Government equity share, while others may wish to keep the equity or even pay off an amount. The calculator will give brokers and their clients the opportunity to discuss their next mortgage move armed with more information than they might have had.”
As many as 144,826 properties were bought with an equity loan following the launch of the HTB scheme that ran from April 2013 to September 2017.
The total value of these equity loans was £7.39bn, with the value of the properties sold under the scheme totalling £35.31bn.
Earlier this year, Skipton launched a range of “Hexit” products which can be considered by those looking to leave their HTB mortgage.
The range, which comprises 2, 3 and 5-year fixed remortgage products, offers £1,000 cashback to help HTB customers with the increased legal and administrative costs typically incurred when repaying the Government equity loan.
The Help to Buy Refinancing Calculator is available for brokers to download at www.skipton-intermediaries.co.uk