March 26th, 2013
26th March 2013
Help to Buy Scheme & Clydesdale Bank give Contractors low mortgage rates
In his budget last week, the Chancellor announced the most revolutionary boost to the UK housing market since Thatcher’s Right to Buy in the 1980s. The Government has launched an initiative that commits £130 billion worth of mortgage lending to the housing market.
The ‘Help to Buy’ Scheme allows a buyer to purchase a new build property with a 5% deposit, with the Government putting in a further 20%. The cap on the price is £600,000. The Government loan allows the buyer to access 75% loan to value products, and is interest free for the first 5 years. This first part of the scheme launches this Monday.
The second part will start from January 2014, and will allow potential buyers to purchase both new and older properties, opening the market right up. This two-pronged stimulus has the potential to jolt the housing market into action, and is potentially a fantastic opportunity for contractors to get some help from the Government to purchase their new homes at 75% loan to value rates.
Contractor-friendly lender, Clydesdale Bank, have yet to announce whether they will be subscribing to the scheme. However, while they mull this over, they have further slashed some of their fixed rates making them one of the most competitively priced lenders in the market for those with smaller deposits.
For contractors with a 15% deposit, the 2 year fixed rate was 4.29% last Thursday but a huge 0.6% has been sliced off this rate to give a new rate of 3.69%. This end of the market has long been neglected by lenders, but Clydesdale have demonstrated their desire to lend in 2013 and beyond with this bold move. Their lowest rate is now 2.19% for those with larger deposits of 40%.
The good news continues for contractors looking to buy their new homes and not pay a king’s ransom for the privilege.
Article by: Taj Kang, Operations Director at Contractor Mortgages Made Easy
Media Contact: Raman Kaur, Public Relations Manager
Tel: 0844 44 88 80