27 January 2016
- Larger equity loan of up to 40 per cent of property price available in London boroughs from 1 February
- Shared equity fixed rate and tracker products with rates from 1.64% available from 28 January
Nationwide Building Society is launching a new range of shared equity mortgage deals, covering all schemes including the Government’s expanded London Help to Buy Equity Loan scheme, from Thursday 28 January.
An extension of the existing Help to Buy Equity Loan scheme in England, of which Nationwide has been a major provider of mortgage lending since May 2013, the London scheme will be open for mortgage applications from 1 February.
Under the original scheme, the Government provided customers purchasing a new build home with an equity loan of up to a maximum of 20 per cent of the purchase price, with the customer providing a minimum 5 per cent cash deposit. From 1 February, this will be extended so that borrowers in the London boroughs will be able to apply for an equity loan of up to 40 per cent, thereby allowing customers to access a mortgage at a lower LTV.
The maximum property price for the scheme in England remains at £600,000, including in Greater London, with different thresholds for the schemes in Scotland and Wales. More than three quarters of Help to Buy Equity Loan borrowers are first time buyers, who qualify a £500 cashback on a Nationwide mortgage deal, with or without a fee. In addition, all Nationwide mortgage applicants can access a fee-free standard valuation and a further £250 cashback if they have a Nationwide Flex* main current account.
Nationwide is providing competitive mortgage rates as part of a separate shared equity range, which includes the Help to Buy Equity Loan schemes. From Wednesday 27 January, the 2 year fixed rate products at 60 per cent LTV will be 1.89% with a £999 fee and 2.29% with no fee. At 75 per cent LTV, 2 year fixed rates start at 1.99% with a £999 fee and 2.39% with no fee.
Rates for the 5 year fixed rate shared equity products start at 2.64% for those up to 60 per cent LTV with a £999 fee and 2.84 per cent with no fee. At 75 per cent LTV, rates start at 2.74% with a £999 fee and 2.94% with no fee.
With the 2 year tracker mortgages deals, rate shared equity products start at 1.64% with a £999 fee and 2.04% with no fee up to 60 per cent LTV. These tracker products are free of early redemption charges.
Henry Jordan, Nationwide’s Head of Mortgages, said: “Nationwide is launching a range of competitive shared equity products ahead of the launch of the expanded London Help to Buy scheme, enabling homebuyers to access a choice of mortgage deals with fee-free valuations as well as a £500 cashback for first time buyers. The Society has provided a substantial proportion of mortgages for the Help to Buy Equity Loan scheme since its launch, and will continue to do so as it is expanded, continuing to help first time buyers and home movers to secure a home of their own.”