Aldermore Bank has confirmed it will be participating in the second phase of the Help to Buy scheme.
The second phase of the Help to Buy scheme will allow borrowers with a 5 per cent deposit to buy property worth up to £600,000.
The Government will guarantee up to 15 per cent of the loan, allowing borrowers to access cheaper mortgage deals. A total of £12bn has been allocated for guarantees to help facilitate up to £130bn of mortgage lending and the scheme will remain open for three years.
The scheme had been due to start in January, but the Government announced last month lenders will be able to begin writing loans through the scheme this week. It did not disclose the fees lenders would have to pay for the guarantees or whether less stringent capital rules will apply to loans under the scheme.
Speaking at the Financial Services Expo in London last week, Aldermore managing director of residential mortgages Charles Haresnape said: “Aldermore will be in the scheme – it is just a question of when. The real shame is that we were all working to 1 January because that was when it was meant to be launched.”
Haresnape says they do not plan to start writing loans through Help to Buy this year.
Nationwide head of intermediary sales Ian Andrew, who was also at the Expo, said :“We are looking at this carefully but Nationwide already lends at 95 per cent loan-to-value to existing customers, new borrowers and through shared equity.
“No lender including Nationwide wants to be exposed to that level, so we are going to have a look at the commercial terms and whether there is any capital relief when the details come out.”
NatWest, Barclays and Santander also say they are awaiting further details before committing to Help to Buy 2.