Newcastle Intermediaries has a number of Help to Buy options as interest free equity loan periods come to an end

6^th November 2018

With the first Help to Buy equity loans approaching the end of their interest free period some borrowers will need to start paying interest on their loans and may wish to consider their options.

Newcastle Intermediaries is one of just a few lenders offering a choice of three re-mortgaging products for borrowers who used a Help to Buy equity loan to purchase their home, combining full and part repayment of the equity loan and at up to 95% LTV.

If there is sufficient equity in the home after 5 years (min 5%) clients can raise capital to repay the loan, consolidating this with their mortgage. The equity loan would then be paid off.
clients might wish to consider a 'staircasing' option which enables them to pay off chunks of the equity loan by adding amounts to the mortgage and reducing their equity loan over time
If clients do not wish to repay their equity loan they can continue to pay their mortgage separately, or transfer their existing mortgage as part of a remortgage process

A two year fixed rate at 3.99% (5.8% APR) is available at 95% LTV and with no fees, £1,000 cashback, free standard valuation and increased overpayment facilities of 10% of the balance per annum. This product will allow borrowers to increase the capital on their home and include their equity loan in their mortgage through a higher LTV. The £1,000 cashback will help cover the increased costs of re-mortgaging on a Help to Buy scheme.

Alternatively, borrowers can maintain part or all of their equity loan and secure a fixed rate for longer, a five year fix at 2.83% (4.7%) APR is available at 75% LTV and also comes with no fees. It also comes with £500 cashback, free standard valuation and 10% overpayments per annum.

Steve Carruthers, head of mortgage distribution at Newcastle Intermediaries, said: "Now is the time for borrowers to re-mortgage if you have a Help to Buy equity loan. You're probably now starting to pay interest on your equity loan and this will only increase.

"Whether you're looking for a straight forward re-mortgage or increasing capital to cover the cost of the equity loan, we're offering highly competitive rates against the few lenders offering these repayment options for Help to Buy homeowners. The increased cashback facility will also help borrowers with partially repaying the cost or fully redeeming their equity loan.

Alternatively, if customers can pay off their equity loan in full, the lender also has a range of competitive residential mortgages which borrowers can switch to.

All product details and the full range of available products can be found at www.newcastleis.co.uk.