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Brokers should maximise first charge on Help to Buy – Halifax

  • 14/02/2020
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Brokers should maximise first charge on Help to Buy – Halifax
Mortgage brokers should look to maximise the amount of a first charge mortgage so borrowers can take out a smaller help to buy equity loan, Lloyds Banking Group has said.

Speaking on Mortgage Solutions Television in association with Halifax, Douglas Cochrane (pictured), head of housing development at Lloyds Banking Group, said there was a “default position” brokers went to when advising under Help to Buy in which they worked out a client’s mortgage based on the 20 per cent national or 40 per cent London loan, with the five per cent deposit.

He said in seeking a larger mortgage, brokers and lenders could help borrowers prepare for the end of the Help to Buy scheme by reducing the reliance on the equity loan element of the purchase.

He said: “I  believe there may be situations where a customer could borrow up to 85 per cent from the first charge lender, put down their five per cent deposit and therefore only require to have to borrow 10 per cent by the way of the equity loan.

“I think that behaviour changes the dynamic of how we think about Help to Buy.”





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