Nationwide resumes Help to Buy for home movers
Nationwide Building Society is resuming access for home movers looking to participate in the Government’s Help to Buy equity loan scheme from Wednesday, 24 September 2014.
Nationwide has continued to be a strong supporter of the Help to Buy equity loan scheme, but temporarily withdrew access for home movers in July 2014, restricting access to first time buyers only. This followed a similar move from Lloyds Banking Group (LBG). Nationwide and LBG have been the two most active supporters of the scheme during its first year and this was therefore a necessary step to ensure volumes remained in line with the Society’s appetite.
Having taken time to assess developments in the equity loan market, Nationwide is now in a position to once again support home movers through the scheme. The move is expected to make Nationwide the leading lender for the Help to Buy equity loan scheme.
Help to Buy Equity Loan is available to home buyers purchasing their only property in England up to a value of £600,000. Buyers must have a five per cent deposit, based on the purchase price. The property is part financed (up to 20 per cent and a minimum of 10 per cent) by an equity loan from the Homes and Communities Agency. There are separate schemes for Wales and Scotland*.
As a result of the changes, shared equity applications will be available on both the fee and no fee products. This means that customers applying via the Help to Buy equity loan scheme now have unrestricted access to Nationwide’s full core range.
In addition to the Help to Buy changes, Nationwide will no longer charge a booking fee for all new mortgages. Mortgage deals will be either fee-free, or come with a £999 product fee, with a discounted £499 fee for first time buyers. Customers opting for a mortgage with a fee can continue to add this to the loan.
Richard Napier, Nationwide’s Divisional Director of Mortgages and Savings, said: “Nationwide has been a long term supporter of the Help to Buy equity loan scheme. By opening up access once more to home movers after a short break, we will remain one of the top lenders through the scheme and will enable even more customers to move onto or up the housing ladder.
“These changes are very positive for our customers. Nationwide continues to offer shared equity customers access to our standard mortgage rates, rather than charging a premium like some other lenders. This demonstrates our ongoing commitment to this market, proving once again that we are on our customers’ side.”