RBS and NatWest are launching two fixed-rate 95% mortgage products as part of the Government’s Help To Buy scheme, which comes into effect this week. Options include a two-year fixed-rate mortgage starting at 4.99% for those with a 5% deposit, and a five-year fixed rate mortgage starting at 5.49%.
Other banks are launching competing Help to Buy mortgage products, with Halifax and HSBC offering similar deals later this year. Virgin Money and Aldermore are planning to offer Help to Buy mortgages from January 2014.
Buy with as little as 5% deposit
The Help To Buy schemes is designed to assist those who are unable to save up a substantial deposit necessary for buying a property. Prospective homeowners could have the option to buy with a deposit of as little as 5% of the property value. The Government offers a guarantee of 15% of the loan to the lender. The scheme will be available for first-time buyers and home movers borrowing to buy homes up to a value of £600,000.
Use the table below to compare Help To Buy mortgage deals:
This article aims to give information, not advice. Always do your own research, and/or seek out advice from a regulated broker, before acting on anything contained in this article. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
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