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Leeds enters Help to Buy shared equity scheme

Leeds Building Society has today launched its first set of products for the Government’s Help to Buy shared equity scheme.

It is offering a 2.99 per cent two-year fixed rate available to 75 per cent LTV, which has a £199 booking fee and a £800 completion fee.

A fee-assisted option is also offered, with the same 75 per cent LTV cap and a starting rate of 3.29 per cent. The £199 booking fee is still applicable but no booking fee is applied.

The maximum loan for both products is £450,000, £150,000 short of the maximum loan permitted through the scheme.

Both products are solely available through brokers.

The Help to Buy equity loan scheme offers buyers a 20 per cent equity loan, interest-free for five years, which helps them buy a new build property from a participating housebuilder up to £600,000.

The scheme is open to first-time buyers and existing homeowners. The £3.5bn scheme is expected to help 74,000 homebuyers over the next three years. In January, the second element of Help to Buy is set to launch, a £130bn mortgage guarantee scheme, which was first revealed by Mortgage Strategy in February.

Last month, housing minister Mark Prisk announced that nearly 7,000 borrowers had reserved a new-build home through the Help to Buy equity loan scheme since it launched on 1 April. There have been around 1,000 sales through the scheme since its launch.

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There is one comment at the moment, we would love to hear your opinion too.

  1. Capital Economics recon this whole daft scheme will flop.

    The reason that the Govt. has to step in is because savers are getting fed up subsidising the feckless.
    Time for savers to go on strike. Withdraw your money. Banks now need increased capital; and they can no longer rely on wholesale markets. Ergo they need savers. If they don’t have savers they can’t lend. That’s why the Govt has invented this scheme.

    The Govt should butt out. Then savers of the world unite – you’ve got the bankers by the balls. When the rates go up and the repos commence you can use your savings to pick up cheap properties and then rent them out to the very people who were relying on you for a cheap ride.

    That is what is called letting the market decide. It only ends in tears when Governments try to manipulate markets.

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