The best Help to Buy mortgages

Updated on 03 March 2016 | 3 Comments

The Help to Buy scheme offers mortgages to buyers with small deposits. Here are the best deals.

The Help to Buy scheme is the Government’s latest idea to help the housing market get moving and allow those with small deposits to get onto or move up the property ladder. It consists of two main parts.

First is the Help to Buy equity loan.

It’s only available on new-build properties and consists of a Government loan worth from 10% up to 20% of the value of the property, which you combine with at least a 5% deposit you have saved up yourself. You then get a special Help to Buy mortgage from one of the participating lenders, which makes up the rest of the value of the property. So if you get a 20% equity loan, the mortgage will be for 75% loan-to-value (LTV).

In England the scheme is available on properties worth up to £600,000, while in Scotland it’s capped at £400,000 and in Wales at £300,000. The equity loan is interest free for at least five years, depending on which country you live in. 

The second part of Help to Buy is the mortgage guarantee scheme.

Again, you just need a 5% deposit, but the Government acts as a ‘guarantor’ on the mortgage. The mortgage lender is charged an insurance fee for this guarantee, which is then built into the cost of the mortgage that you repay. This strand of the scheme is available UK-wide.

For more read Help to Buy mortgages explained.

Equity loan scheme

Let’s take a look at which lenders are taking part in each of the Help to Buy segments and what the rates look like, starting with the equity loan mortgages.

The following lenders are offering equity loan mortgages in the three areas that are now up and running on the scheme:

Help to Buy (England)

Help to Buy (Wales)

Help to Buy (Scotland)

Barclays via Woolwich

Skipton BS

Lloyds Banking Group (Lloyds Bank/Bank of Scotland/ Halifax)

Nationwide BS

Leeds BS

Virgin Money

Santander

NatWest/RBS

TSB

Chorley BS

Dudley BS

Mansfield BS

Newbury BS - (selected postcodes in south east England)

Teachers BS (only available to teachers as well as residents of Wiltshire, Dorset and Hampshire)

Barclays via Woolwich

Skipton BS

Lloyds Banking Group (Lloyds Bank/Bank of Scotland/ Halifax)

Nationwide BS

Leeds BS

Virgin Money

Mansfield BS

Monmouthshire BS

Principality BS

Barclays via Woolwich

Skipton BS

Lloyds Banking Group(Lloyds Bank/Bank of Scotland/ Halifax)

Nationwide BS

Leeds BS

Virgin Money

Glasgow Credit Union

Scotwest Credit Union

Here are the top ten Help to Buy equity loan rates across two-year deals on a 75% LTV mortgage:

Lender

Type

Rate

Fee

Availability

Notes

Nationwide

Tracker

1.44% (Base rate + 0.94%)

£999

England, Wales, Scotland

First time buyers pay a reduced fee of £499.

Nationwide

Tracker

1.84% (Base rate + 1.34%)

£0

England, Wales, Scotland

 

Nationwide

Fixed

1.89%

£999

England, Wales, Scotland

First time buyers pay a reduced fee of £499.

Leeds BS

Discount

1.99% (SVR-3.70%)

£499

England, Wales, Scotland

 

Halifax/Bank of Scotland

Fixed

2.04%

£999

England, Wales, Scotland

 

Leeds BS

Fixed

2.19%

£199

England, Wales, Scotland

 

Nationwide

Fixed

2.29%

£0

England, Wales, Scotland

 

Virgin Money

Fixed

2.29%

£995

England, Wales, Scotland

 

Halifax/Bank of Scotland

Fixed

2.29%

£999

England, Wales, Scotland

First Time buyers only. 1% cashback available up to £2,500.

NatWest/RBS

Fixed

2.42%

£0

England

 

Here are the top ten Help to Buy equity loan rates across three-year deals on a 75% LTV mortgage:

Lender

Type

Rate

Fee

Availability

Notes

Nationwide

Tracker

1.99% (Base rate + 1.49%)

£0

England, Wales, Scotland

 

Newbury BS

Discount

2.39% (SVR-0.70%)

£500

England

 

Virgin Money

Fixed

2.49%

£995

England, Wales, Scotland

£500 cashback.

Nationwide

Fixed

2.54%

£999

England, Wales, Scotland

First time buyers pay a reduced fee of £499.

Monmouthshire BS

Discount

2.55% (SVR-2.44%)

£99

Wales

 

Nationwide

Fixed

2.84%

£0

England, Wales, Scotland

 

Virgin Money

Fixed

2.89%

£0

England, Wales, Scotland

 

Skipton BS

Fixed

2.99%

£0

England, Wales, Scotland

 

Mansfield BS

Discount

2.99% (SVR-2.6%)

£999

England, Wales

 

Virgin Money

Fixed

3.09%

£995

England, Wales, Scotland

£2,500 cashback

And here are the top ten Help to Buy equity loan rates across five-year deals on a 75% LTV mortgage:

Lender

Type

Rate

Fee

Availability

Notes

Virgin Money

Fixed

2.84%

£995

England, Wales, Scotland

£500 cashback.

Nationwide

Fixed

2.84%

£999

England, Wales, Scotland

First time buyers pay a reduced fee of £499.

Leeds BS

Fixed

2.89%

£199

England, Wales, Scotland

 

Nationwide

Fixed

3.04%

£0

England, Wales, Scotland

 

Santander

Fixed

3.14%

£0

England

 

Halifax/Bank of Scotland

Fixed

3.14%

£999

England, Wales, Scotland

 

NatWest/RBS

Fixed

3.15%

£0

England

 

Virgin Money

Fixed

3.19%

£995

England, Wales, Scotland

£2,500 cashback.

Halifax/Bank of Scotland

Fixed

3.34%

£0

England, Wales, Scotland

 

Halifax/Bank of Scotland

Fixed

3.34%

£999

England, Wales, Scotland

First Time buyers only. 1% cashback available up to £2,500.

Skipton BS

Fixed

3.39%

£0

England, Wales, Scotland

 

Remortgaging

If you were one of the thousands that took part in the Help to Buy equity loan scheme when it launched in April 2013 your original deal may be coming to an end.

Once it expires you’ll revert to your lender’s Standard Variable Rate (SVR) which is typically a lot more expensive. If you plan on staying in the property you might want to consider remortgaging onto a better deal.

However, there are only a handful of lenders with Help to Buy equity loan remortgage products including Leeds Building Society, Newbury Building Society, Dudley Building Society, TSB, Halifax/Bank of Scotland and Lloyds Bank.

Here is how the deals stack up:

Lender

Type

Rate

Fee

Max LTV

Availability

Notes

Halifax/Bank of Scotland

Two-year fixed

1.74%

£0

60%

England, Wales, Scotland

 

Halifax/Bank of Scotland

Two-year fixed

2.04%

£0

75%

England, Wales, Scotland

 

Newbury BS

Three-year discount

2.19% (SVR—2.26%)

£750

60%

England

 

Newbury BS

Three-year discount

2.39% (SVR-2.06%)

£750

75%

England

 

Leeds BS

Two-year fixed

2.44%

£199

75%

England, Wales, Scotland

 

Halifax/Bank of Scotland

Two-year fixed

2.59%

£0

85%

England, Wales, Scotland

 

TSB

Two-year fixed

2.69%

£995

60%

England

£250 cashback

Lloyds Bank

Two-year fixed

3.04%

£995

60%

England, Wales, Scotland

 

Leeds BS

Five-year fixed rate

3.14%

£199

75%

England, Wales, Scotland

 

TSB

Two-year fixed

3.44%

£995

75%

England

£250 cashback

Lloyds Bank

Two-year fixed

3.44%

£995

75%

England, Wales, Scotland

 

Dudley BS

Three-year discount

3.59% (SVR-1.40%)

£0

75%

England

 

Dudley BS

Three-year discount

3.99% (SVR-1%)

£0

85%

England

 

Lloyds Bank

Two-year fixed

4.34%

£995

85%

England, Wales, Scotland

 

TSB

Two-year fixed

4.49%

£995

85%

England

£250 cashback

Mortgage guarantee scheme

So far, the following lenders have signed up to the mortgage guarantee scheme:

  • Al Rayan Bank
  • Aldermore Bank
  • Bank of Ireland (Northern Ireland customers only)
  • Barclays via Woolwich
  • Halifax / Bank of Scotland
  • HSBC
  • Lloyds Bank
  • NatWest / Royal Bank of Scotland (RBS)/ Ulster Bank
  • Post Office Money
  • Santander
  • Virgin Money

The mortgage guarantee part of the scheme gives you access to 95% LTV mortgages, but you can also get these outside of the scheme.

So we've taken a look at the best deals across the 95% LTV market.

Here are the top deals for two-year fixed rate mortgages at 95% LTV. Those outside of the Help to Buy scheme are italicised while Help to Buy deals are in bold:

Lender

Rate

Fee

Chelsea BS

3.99%

£1,545

Yorkshire BS

4.04%

£845

Hanley Economic BS

4.05%

£0

Post Office Money Help to Buy

4.29%

£0

Chelsea BS

4.29%

£1,545

And here are the top rates for five-year fixed rate mortgages. Those outside of the Help to Buy scheme are italicised while Help to Buy deals are in bold:

Lender

Rate

Fees

Chelsea BS

4.69%

£1,545

Yorkshire BS

4.74%

£845

Chelsea BS

4.89%

£0

Yorkshire BS

4.89%

£0

Virgin Money Help to Buy

4.89%

£0

Post Office Money Help to Buy

4.89%

£0

See the latest mortgage rates and get expert advice

This article aims to give information, not advice. Always do your own research and/or seek out advice from a regulated broker (such as one of our brokers here at loveMONEY), before acting on anything contained in this article.

Your home or property may be repossessed if you do not keep up repayments on your mortgage.

More on buying property:

How to beat Stamp Duty

Help to Buy mortgages explained

When should you stop renting and buy?

Seven reasons mortgage lenders turn you down

The questions you must ask before you buy a house

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