"Homeowners who were among the earliest to buy under the Help to Buy equity loan scheme may be coming to the end of their current deal"
Home owners who bought soon after the scheme was launched may be looking to remortgage as their existing deal matures in the coming months – official figures show almost 32,000 Help to Buy equity loan mortgages were completed in England in 2015.
According to Moneyfacts, in April 2015, the average two year fixed rate mortgage at 75% LTV was at 2.83%.
Today, Leeds Building Society launches a new two year fixed rate Help to Buy at 1.50% up to 75% LTV.
The deal is available for purchase or remortgage in England and Wales and comes with a free valuation and a £999 fee.
Jaedon Green, Leeds Building Society’s Director of Product and Distribution, said: “Homeowners who were among the earliest to buy under the Help to Buy equity loan scheme may be coming to the end of their current deal and could switch to save themselves some money.
“Mortgage rates are at historic lows at the moment and the average two year fixed rate mortgage has fallen since the Government launched the scheme in March 2013.
“For example, if you borrowed £150,000 two years ago for 25 years at the average of 2.83%, your monthly repayment is £697.58.
“Remortgaging now for the remaining 23 years with a balance of c£141,500 at 1.50% brings the monthly repayment down to £606.23. This is a potential saving of £91.35 each month or an overpayment which could cut the overall term of your mortgage and save in the process.”
