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Precise introduces capital raising to Help to Buy range

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  • 21/10/2019
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Precise introduces capital raising to Help to Buy range
Precise Mortgages has added a capital raising option to its Help to Buy remortgage range for borrowers who wish to repay part of their equity loan.

 

To support intermediaries, Precise has produced a guide on Help to Buy capital raising and the rules that apply to the part repayment of the government’s loan.

Part repayment of the equity loan is known as staircasing.

The minimum repayment a borrower can make under the rules of the scheme is ten per cent of the property value.

Group managing director for Precise Mortgages Alan Cleary (pictured) said: “The Help to Buy scheme has been a huge success since its launch in 2013, helping hundreds of thousands of aspiring homeowners take their first step onto the property ladder.

“Our new simple and straightforward capital raising option could help these customers by allowing them to remortgage and repay part of the equity loan which will become payable after the initial five-year interest free period ends.”

After five years, borrowers pay 1.75 per cent in interest on the amount they originally borrowed under the scheme.

Since the launch of Help to Buy in April 2013, 221,405 properties have been bought using the scheme and the total value of equity loans has exceeded £12.4bn.

 

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