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New Mortgage Rates Announced

Written By On 08/10/2013

The news that everyone's been waiting for has at last been announced; interest rates for part two of the Help to Buy scheme.

The awaited comments is that the Royal Bank of Scotland and NatWest are taking applications immediately with Halifax following on about a week later.

RBS and NatWest are both showing similar interest rates for two years fixed at 4.99 per cent for applicants who have only five per cent to put down. Plus there are no arrangement fees to be added to this.

Halifax will have the same term fixed at 5.19 per cent plus an extra £995 to arrange the mortgage.

HSBC intend to participate in the lending scheme by the end of the year and they will become the first main lender without taxpayer's aid.

Virgin Money will join early next year. However, Santander UK and Barclays are still undecided.

Since the Prime Minister made known publicly at his party's conference last week that he had decided to release the second phase three months ahead of schedule, lenders and interested members of the general public have been in turmoil not knowing the rates.

Help to Buy part one was launched in April earlier this year and that related to only new properties. It helped purchasers to reach up to twenty per cent of the loan required. So far in excess of fifteen thousand buyers have benefited from this to help them buy their new home.

The latest part of the scheme will allow property buyers to purchase homes of any age up to six hundred thousand pounds. Provided they cough up at least five per cent as a deposit, the government will supply another fifteen per cent. They will assure that to the lender and will receive a fee back from them for the privilege.