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Nationwide to join Help to Buy scheme tomorrow

Tracie-Pearce-Nationwide-500x320.jpg
Tracie Pearce

Nationwide will accept mortgage applications for borrowers looking to participate in the shared equity part of Help to Buy from 29 May.

The lender confirmed to Money Marketing’s sister title Mortgage Strategy last week it was preparing to enter into the scheme.

Applicants will have access to a 2.54 per cent two-year fixed rate up to 75 per cent LTV with a £900 fee. The initial rate drops to 2.44 per cent for existing borrowers and first-time buyers pay a reduced fee of £400.

There will also be the option of a 2.94 per cent two-year fixed rate up to 75 per cent LTV and a 2.64 per cent three-year fixed rate up to 75 per cent LTV. Both rates drop to 2.84 per cent and 2.54 per cent respectively for existing borrowers.

A non-refundable booking fee of £99 is payable on all three products on reservation.

Nationwide head of group mortgages Tracie Pearce says: “We are accepting Help to Buy applications as we are keen to support the Government’s efforts in helping the mortgage market to move forward.

“It is another way that Nationwide customers can access great deals to help them onto – or move up – the property ladder.”

In the March Budget chancellor George Osborne launched two measures, known as Help to Buy, to build on existing mortgage indemnity and shared equity schemes NewBuy and FirstBuy.

The £3.5bn shared equity part of Help to Buy was launched in April and will carry on over the next three years in order to support up to 74,000 homebuyers. This is an extension of the £500m shared equity scheme FirstBuy, which launched in 2011. The mortgage indeminity element of Help to Buy, which was revealed by Mortgage Strategy in January, will launch in January. 

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