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Aldermore and Virgin Money to launch Help to Buy 2

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05/12/2013
George Osborne has confirmed that two more lenders will enter the Help to Buy arena this year.

I  his Autumn statement, the Chancellor of the Exchequer has revealed that Aldermore Bank and Virgin Money will both  start offering Help to Buy mortgage guarantee products later this month.

The two lenders had previously indicated they would join the scheme from 2014 but both will now launch before the New Year.

Aldermore will launch its products on Monday 16 December with Virgin Money expected to follow.

“It is not enough to build more houses if families who can afford mortgages don’t have the large deposits that the banks have demanded,” Osborne said.

“Help to Buy is now helping thousands to own their own home and I can today announce Aldermore and Virgin Money, two challenger banks, expect to join the scheme this month.”

Aldermore confirmed it would offer both house purchase and remortgage loans, the first lender to do so. Its two-year fixed rate products will be available between 85.01% and 95%.

Osborne later said the government wanted a stable housing market and further powers given to the Bank of England would help prevent any bubbles in the market.

He also announced a new government scheme to help housing developments proceed to increase the supply of housing. “If we want more people to own a home, we have to build more homes.The OBR is absolutely right to draw attention to the weakness of housing supply in this country.

“We are announcing a billion pounds of loans to unblock large housing developments on sites in Manchester, Leeds and across the country. We want to regenerate some of our most rundown urban estates and councils will sell off some of the most expensive social housing so they can house many more families for the same money.”

Osborne later promised to further expand the Right to Buy scheme, which has doubled in size since the government came to power.

Reacting to the Help to Buy news Charles Haresnape, managing director of residential mortgages at Aldermore, said:

“I am delighted to announce Aldermore’s participation in Help to Buy guarantee.

“We are committed to lending to homeowners in the UK, especially those with small deposits, to get on the housing ladder and those who are unable to access mortgages from traditional high street lenders, despite being creditworthy.

“We are the first and only bank in the scheme to offer remortgages so far.”

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