Help to Buy mortgage products launch today starting at 4.99% APR Go compare with our comparison table

Help to Buy mortgage products launch today starting at 4.99% APR

09 October 2013 / by Isabel Buxton

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.

© Fair Investment Company Limited
 
 

Help To Buy Mortgage Deals

Provider

Type

Initial Interest Rate

Initial Term

Max LTV*Product Fee 
Fixed

4.29%

Reverts to 3.75%

2

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.90% APRC. This is the cost of the mortgage over the full term.
Fixed

4.29%

Reverts to 3.75%

2

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.90% APRC. This is the cost of the mortgage over the full term.
Fixed

3.99%

Reverts to 4.24%

2

Years

95%

NoMore Info >
£500 Cashback. Early redemption charges may apply. Overall Cost for Comparison 4.30% APRC. This is the cost of the mortgage over the full term.
Fixed

3.94%

Reverts to 4.70%

3

Years

95%

NoMore Info >
£750 Cashback. Early redemption charges may apply. Overall Cost for Comparison 4.70% APRC. This is the cost of the mortgage over the full term.
Fixed

3.94%

Reverts to 4.70%

3

Years

95%

NoMore Info >
£750 Cashback. Early redemption charges may apply. Overall Cost for Comparison 4.70% APRC. This is the cost of the mortgage over the full term.
Fixed

4.19%

Reverts to 4.24%

5

Years

95%

NoMore Info >
£500 Cashback. Early redemption charges may apply. Overall Cost for Comparison 4.30% APRC. This is the cost of the mortgage over the full term.
Fixed

4.81%

Reverts to 4.00%

5

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.30% APRC. This is the cost of the mortgage over the full term.
Fixed

4.81

Reverts to 3.75%

5

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.30% APRC. This is the cost of the mortgage over the full term.

Representative Example:


A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.


The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).


In this example the overall cost for comparison is 3.7% APRC representative.


YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.