8th October 2013
The Help to Buy scheme has launched today though so far it is only banks with significant government backing actually offering mortgages with the best rate 4.99% from RBS.
Halifax is offering a 95 per cent two-year fixed rate through the scheme at 5.19 per cent while RBS is offering a two year rate at 4.99 per cent and a five year rate at 5.49 per cent.
Bank of Scotland, also part of the Lloyds Banking Group along with Halifax will join the scheme this week.
Virgin Money (which owns the old Northern Rock bank) HSBC and Aldermore have also committed to joining the scheme next year meeting the original deadlines.
The Chancellor of the Exchequer, George Osborne said:
“Through Help to Buy: mortgage guarantee I want to help those families that have saved for years, earn decent salaries, but cannot afford the deposits currently being asked for by the banks. I want young people to have the same chance of getting on the property ladder as their parents and grandparents.
“Too many people are still being denied the dream of owning their own home, which is why we have brought forward the launch of this scheme, so as of today borrowers can start applying for a mortgage with a five per cent deposit.”