Aldermore and Virgin Money are set to join the government’s Help to Buy scheme this month, despite originally announcing that they would not be joining until the new year.
In his Autumn Statement speech, the chancellor revealed that mortgages by the two lenders would be available from Monday 16th December, just in time for Christmas.
These two new lenders are part of a series of changes signifying the second phase of the 95% mortgage scheme, and Aldermore is the first bank in the ranks to offer remortgages. Royal Bank of Scotland, NatWest, Halifax and HSBC are also some of the banks taking part in the Help to Buy scheme.
Help to Buy is a government-backed mortgage scheme which allows a substantially lower deposit, in order to help bright young things get their foot in the door of the property market. To be eligible, you must have a deposit of at least 5%.
The first part of the scheme, which launched in April 2013, is an equity loan, and is only available for new-builds. The second still-to-launch stage is for a mortgage guarantee loan, and is available on both new and existing properties.There is a £600,000 upper price limit in place for both options, and the opportunity to take out these mortgages will end three years after their respective start dates. Banks are applying rigorous credit checks to these loans, and there is no guarantee your application will be approved.
Charles Haresnape, Managing Director of Residential Mortgages at Aldermore commented:
“I am delighted to announce Aldermore’s participation in Help to Buy guarantee. We are committed to lending to homeowners in the UK, especially those with small deposits, to get on the housing ladder and those who are unable to access mortgages from traditional high street lenders, despite being creditworthy.”
Anthony Mooney, the Director of Financial Services at Virgin Money added:
"It is encouraging to see that the scheme has got off to a strong start, and we are pleased to be widening the choice of products available to those looking to get on to or move up the housing ladder.”