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Melton Mowbray BS launches Help to Buy purchase and remortgage

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  • 17/01/2020
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The Melton Mowbray Building Society will be launching its first help to buy mortgage products on 20 January for both purchases and remortgages.

 

The society said its products would also help those who are staircasing, in its effort to support first-time buyers and existing Help to Buy homeowners who are facing affordability challenges. 

The two purchase products include one for England and Wales which is a five-year fixed product with a rate of 2.75 per cent and a maximum loan to value (LTV) of 75 per cent. It comes with no application or completion fees.   

The second is for the London scheme – a five-year fixed rate at 2.69 per cent with no application or completion fees. The maximum LTV for this product is 55 per cent. 

For borrowers who want to remortgage, the mutual will offer the equity loan remortgage product where the full equity loan remains in situ and is subject to a maximum borrowing amount of 75 per cent LTV or 55 per cent in London. 

The second remortgage option is the capital raising remortgage, for those who are staircasing a minimum of 10 per cent of the property value to pay off the equity loan. This has a maximum borrowing amount of 75 per cent LTV or 55 per cent in London. 

Lastly the society will also offer a remortgage and fully repay equity loan which will fall in line with the its standard lending criteria and will no longer be considered a Help to Buy mortgage. 

Melton Mowbray’s criteria requires properties to be freehold only, have a maximum repayment term of 40 years and a maximum purchase price of £600,000 or £300,000 in Wales. 

Dan Atkinson, head of sales and marketing, the Melton, said: “Entry into this market reflects our commitment to helping first time buyers get onto the property ladder and ensuring our customers have relevant, good value options available to them.

“Our Help to Buy mortgages also give choice to homeowners coming to the end of their existing Help to Buy scheme who might wish to remortgage to another lender or have the flexibility to pay off part of their equity loan.”

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