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Loughborough BS enters Help to Buy remortgage market

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  • 10/05/2018
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Loughborough Building Society has joined the Help to Buy remortgage market with a product designed to support people to pay off the government loan.

 

The product will allow borrowers to become the sole owner of the equity in their home.

The mutual said it had made its complete remortgage range available to these borrowers at up to 95% loan-to-value (LTV) and added that the new product could also assist with the cost of the government buy out with low fees and cash back.

Loughborough BS head of marketing and business development Eileen Wheatley, said: “As a mutual, our objective is to help as many people as possible own their own homes and the Help To Buy Scheme has been, and is still, a solution for many people who don’t have sufficient deposit to buy otherwise.

“However, we believe most people would prefer to take ownership of all the equity in their home but may not be aware that this might be possible.

“We’re conscious that in some cases there may not be huge amounts of equity at this early stage and have taken this into account when launching this proposition,” she added.

 

Repaying debt and interest

 

The first Help to Buy (HTB) purchasers will start repaying their debt to the government as the five year interest free loan now starts to bear interest.

Government figures show there were 2,103 completions with the aid of a HTB loan in England taken out in the second quarter of 2013, just after it launched.

There were a further 3,944 in the third quarter of 2013, and 7,976 in the fourth.

In total, the loans have helped to fund the purchase of at least 158,883 properties in England over the past five years, with 81% bought by first-time buyers.

 

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