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Precise expands Help to Buy to Scotland

Precise expands Help to Buy to Scotland

Precise Mortgages is expanding its Help to Buy mortgage range into Scotland and will include remortgage options for the first time.

Scotland-based customers can choose from purchase and remortgage fixed rate products available up to 80 percent loan to value.

The lender's Help to Buy remortgages offer options up to 75 percent LTV — and up to 80 percent in Scotland — on two, three and five-year fixed rate products.

The lender stated both products were available to customers without perfect credit profiles and stressed there were no product fees for remortgages.

The Help to Buy scheme was launched in 2013 and is available for new build properties, offering a government loan of up to 20 per cent of the home’s value.

Since its inception more than 400,000 first time buyers have used the scheme to purchase a home.

Precise's latest roll-out followed last year’s Budget announcement that the scheme would be extended from its 2021 deadline to 2023.

Alan Cleary, managing director at Precise, said: "The Help to Buy scheme has been a huge success since its launch in 2013, helping hundreds of thousands of aspiring homeowners take their first step onto the property ladder. 

"These latest additions to our Help to Buy range will help even more customers in realising their home-owning dreams.

"We’re pleased to show support for the Scottish market by offering Help to Buy Scotland for the first time, while our Help to Buy remortgages will help early adopters of the scheme make the transition from becoming first time buyers to established homeowners."

Under Help to Buy equity loan rules borrowers don’t pay any interest or fees on the government’s equity loan for the first five years.

In the sixth year, they are charged 1.75 per cent and after then, the fee rises by inflation based on the Retail Prices Index plus 1 per cent each year.

Precise is offering customers pound-for-pound options on its remortgages, meaning they will be able to directly compare the new monthly mortgage payments with those of their existing lender.

Precise's Help to Buy offers are backed by a priority processing team, which is dedicated to assessing cases within 48 hours and making offers within 21 days, the lender stated.

Nicholas Morrey, product technical manager at at John Charcol, said Precise's move to serve Scotland was great news as Scotland was an area under served by lenders.

He said: "As a broker, I welcome Precise's move to offer Help to Buy in Scotland. There are only 16 lenders do both out of more than 60 in the UK."

Mr Morrey also praised the firm for offering pound to pound remortgaging, where the consumer is not forced to borrow more than they had for their current mortgage.

"It's a great option for people who many not be able to afford to buy out the government scheme," he said. 

Robert Sinclair, chief executive for the Association of Mortgage Intermediaries, said: "It is really good news more lenders are looking to broaden their product offerings.