Leeds to accept Help to Buy remortgages

Posted on Tuesday, March 17 by Joy Tibbs

Leeds Building Society will be the first UK lender to accept remortgage applications from Help to Buy (HTB) equity borrowers.

It will accept remortgages on its existing HTB products, including: a two-year discount HTB mortgage at 1.99% up to 75% loan-to-value (LTV); a two-year fixed-rate HTB mortgage at 2.34% up to 75% LTV; and a five-year fixed-rate HTB mortgage at 2.99% up to 75% LTV.

HTB homeowners will be able to remortgage to a competitive rate and retain their existing loan size, subject to valuation, keeping the government equity loan. Alternatively, HTB homeowners can choose to redeem the government equity loan as part of their remortgage up to 90% LTV and buy the property outright.

“We have seen strong demand for our Help to Buy mortgages since these were launched in August 2013,” says Martin Richardson, Leeds Building Society’s general manager, business development.

He adds: “Now is an ideal time to remortgage, as rates have never been lower. When Help to Buy equity was launched in May 2013, the average two-year fixed-rate mortgage was 3.80%, but by February 2015 this had fallen to 3.14%. On an average £140,000 mortgage with a 25-year term, this would bring down monthly repayments by more than £49 per month.

“In addition, the benefits of a low £199 fee and a free valuation reduce upfront costs for the type of borrowers that Help to Buy was introduced to support.”

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