Following the launch of its new build mortgage range last month, Barclays has become one of many lenders announcing details on its launch into the help to buy London scheme. Lending against the scheme alongside the likes of Aldermore, Halifax, Lloyds and Natwest, the help to buy London scheme has been introduced in a bid to address the affordability issues of first time buyers in the capital.
Looking to provide other innovative ways to help more people afford a home in London, as the gap between income and house prices widens, Barclays help to buy mortgages are now offering a choice of 2 and 5 year fixed rates with a maximum loan term of 35 years. The lender’s 2 year fixed rate range now starts at 1.55% at 55% loan to value (LTV) with a £999 fee, or 1.85% at 55% LTV with no fee. The 5 year fix now stands at 2.19% with the £999 fee at 55% LTV, or 2.49% with no fee.
The lender has equally announced that it will accept up to 5% builder’s deposit, including legals and stamp duty, as well as accepting gifted deposits subject to criteria.
Barclays is already offering a help to buy equity loan nationwide, with new rates announced earlier in the week, including 2 year fixed rate mortgages at 60% loan to value (LTV) now starting at 1.89% with a £999 fee and a 2.29% with no fee.
Elsewhere in the market, Shawbrook has made a sweep of changes to its residential investment offers, now extending its original product into 3 new versions alongside 3, 4 and 5 year fixed rates, with a maximum interest only period of 30 years.
The first product now stands at 2.99% above the 3 month LIBOR (London Inter-Bank Lending Rate) for simple residential assets, such as properties let single households or private tenants. For small HMOs (Homes of Multiple Occupancy), let to private tenants or students for of up to 6 beds, now start from 3.49% above 3 month LIBOR. Whereas the third, designed for multi-units such as a freehold block of up to 4 flats, now stands at 2.99% above the 3 month LIBOR.