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.