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Barclays joins Help to Buy 2 as Halifax rolls out second product

Barclays will join the second phase of Help to Buy while Halifax has rolled out the second product in its own Help to Buy range.

Barclays has announced its intention to join the second phase of Help to Buy and Halifax has rolled out the second product in its own Help to Buy range.

Barclays already participates in the shared equity version of Help to Buy offering its products through brokers as well as direct.

While it has stated it will join the second phase, no launch date or product details have been released.

RBS, NatWest and Halifax are the first lenders to begin taking applications under Help to Buy 2. Barclays joins Santander, HSBC, OneSavings Bank, Aldermore and Virgin Money which have all committed to joining the scheme either later this year or next year.

Halifax initially launched a 5.19 per cent two-year fix at 95 per cent loan to value with a £999 fee under Help to Buy 2. It has now announced a second product, a 5.59 per cent two-year fix at up to 95 per cent LTV, with no fee.

Halifax is offering its Help to Buy 2 products through both brokers and the direct channel.

Chadney Bulgin mortgage partner Jonathan Clark says: “Barclays has been quite aggressive on Help to Buy 1 so that is brilliant news that they are joining the second phase. What we need is more competition to spice things up.

“As far as the 5.59 per cent fix from Halifax is concerned, the potential problem is that after two years you go onto the standard variable rate which at the moment is about 3.99. This is ok for now but if rates rise, it could be problematic. It would be good to see some medium-term fixed rates being offered.”

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