Nationwide has revealed it will be launching a new range of shared equity mortgage deals in line with London’s help to buy scheme. As an extension of the existing help to buy equity loan scheme across England, the new London scheme is now open for mortgage applications, with many lenders joining force under the scheme.
Borrowers in the London boroughs will be able to apply for an equity loan of up to 40% compared to the 20% of the original scheme. Maximum property prices for the scheme in England remains at £600,000. Nationwide mortgage applicants can equally receive a fee-free standard valuation plus a further £250 cashback if they hold a Nationwide Flex current account.
The lender has also revealed a separate shared equity range also covering the broader help to buy schemes. 2 year fixed rate products at 60% loan to value (LTV) will be 1.89% with a £999 fee and 2.29% with no fee. At 75% LTV, 2 year fixed rates will also start from 1.99% with a £999 fee and 2.39% with no fee.
Rates for 5 year fixed rate shared equity products, however, now start at 2.64% for those up to 60% LTV with a £999 fee and 2.84% with no fee. At 75% LTV, rates will start at 2.74% with a £999 fee and 2.94% with no fee.
As far as 2 year tracker mortgage deals are concerned, shared equity products now start at 1.64% with a £999 fee and 2.04% with no fee up to 60% LTV. These tracker products are free of early redemption charges.
Aside from Nationwide help to buy mortgage rates, TSB has also commented on the opportunities now available around the government initiatives on help to buy, providing more houses for first-time buyers and stock for the economy. However, the lender plans to extend its reach outside of this, by unveiling new plans for a wider mortgage range available to new-build homebuyers. Watch this space for the latest rates as they come.