Mortgages  

The Cambridge launches Help to Buy remortgage option

The Cambridge launches Help to Buy remortgage option

Cambridge Building Society has launched a range of Help to Buy mortgages open to existing members looking to remortgage as well as first-time buyers.

In the Help to Buy range the lender now offers a two-year fixed rate at 2.24 per cent up to 75 per cent loan-to-value (LTV), with a £199 application fee and no completion fee.

A two-year discount product is also available at the same rate with a £199 application fee and no completion fee, also offering no early repayment charge and unlimited over payments.

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The Help to Buy Equity Loan scheme offers borrowers a government loan of up to 20 per cent of the cost of a new-build home, interest-free for the first five years.

A Cambridge spokesman said the government loan associated with Help to Buy would be treated as separate from the mortgage provided by the building society. 

Andy Lucas, chief operating officer at The Cambridge said the lender hopes to support those who have recently got a foot on the housing ladder but have a limited choice when they come to the end of their current Help to Buy deal.  

He said: "We are hearing from borrowers who are looking for choice of product when coming to the end of their current Help to Buy deal.

"With latest reports suggesting that over 150,000 households have already been helped by the scheme, there will be a growing remortgage market developing over the new few years."

Daniel Bailey, principal at Middleton Finance, said he had been concerns for some time about the lack of remortgage options available to existing Help to Buy borrowers. 

He said: "It is welcome news that Cambridge Building Society are offering a Help to Buy range in particularly for borrowers who will be looking to remortgage.

"I would like to see more lenders offering remortgage products and giving the borrower more choice when it comes to remortgaging."

rachel.addison@ft.com