Precise Mortgages to launch Help to Buy London mortgages
Chancellor George Osborne announced during his Autumn Statement last year that an extension of the Help to Buy: Equity Loan scheme would focus on the needs of those buying in London.
Buyers will be able to obtain an interest-free equity loan from the government worth up to 40% of the value of a new-build home, compared to the 20% loan offered to those living outside of London.
The government loan will be available through lenders from 1 February.
Alan Cleary, managing director at Precise Mortgages, confirmed that Precise will be one of a handful of lenders offering mortgages to support the scheme, adding that the lender would also be entering the Right to Buy and shared ownership schemes later in the year.
He explained that rates and products for the London scheme would look the same as Precise’s existing Help to Buy range, launched earlier this year. The range offers a two-year fixed rate starting at 3.95% and four-year fix starting at 4.20%. All deals come with a product fee of £995 and loan limit of £450,000.
This week, Leeds Building Society became one of the first lenders to confirm its Help to Buy London product details, which includes two-year and five-year product options with a rate of 1.79% and 2.45%, respectively.