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Barclays brings back Help to Buy mortgages

  • 07/05/2020
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Barclays brings back Help to Buy mortgages
Barclays has reintroduced Help to Buy mortgages signalling the first-time buyer market could be starting to reopen after the coronavirus.


The lender is offering mortgages under the standard government-backed scheme up to 75 per cent loan to value (LTV).

Under Scotland Help to Buy, deals are available up to 80 per cent LTV.

However, the London Help to Buy scheme is restricted to 55 per cent LTV, meaning buyers would have to stump up a significant 45 per cent deposit.

Green Home Help to Buy is being offered at 75 per cent LTV.

Barclays is offering a two and five-year product under the standard scheme at 1.74 per cent.

The bank is also now offering buy-to-let remortgages up to 75 per cent LTV, as well as product transfers and further advances on their residential range up to 80 per cent LTV.

A number of lenders pulled their Help to Buy range of mortgages, as well as restricting high LTV lending, in response to the coronavirus outbreak in March.

Last week Santander also brought back its Help to Buy loans, signalling lender appetite for this group of buyers could be returning.

It has been rumoured the government will extend Help to Buy equity loan scheme in its current format past its current end date in 2021, when restrictions come to the scheme before its due to end in 2023.

Help to Buy remains popular

Demand for the scheme remained strong prior to the coronaviurs outbreak.

Stats today showed there were 52,207 properties bought through the initiative in the year to 31 December 2019, up by 0.1 per cent year on year.

In total, 263,297 properties have been bought through the initiative since it was launched in 2013 to the end of 2019.

First-time buyers accounted for 81 per cent of purchases, according to date from the ministry of housing, communities and local government.

The total value of the equity loans, which allow buyers to put down a bigger deposit, was £15.34bn, with the value of the properties sold under the scheme totalling £70.26bn.

The average purchase price of a property bought under the scheme was £266,849, with buyers using a typical equity loan of £58,258.

The figures were prior to the coronavirus outbreak, which is set to be reflected in the next set of results.

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