Teachers Building Society has launched a Help to Buy mortgage deal, which offers both teachers and Dorset residents the chance to buy a new-build home with just a 5% deposit.
The three-year discounted variable mortgage deal has a rate of 2.89%* on up to 75% Loan to Value. The offer is available now.
The deal has no arrangement fees and a £99 application fee refundable upon completion. The valuation fee is also refunded on completion.
The Help to Buy mortgage offer is available both direct from Teachers Building Society and through its network of intermediaries.
James Bawa, Chief Executive of Teachers Building Society, said: “Help to Buy offers the chance to buy a new build home to buyers who would otherwise be denied access by the lack of a sizeable deposit. We are delighted to be able to take part in the scheme and look forward to helping more teachers and Dorset people realise their home owning dreams."
Announced by the Chancellor in April this year, Help to Buy is the Government's latest affordable home purchase scheme.
Available in England, Help to Buy provides an equity loan of up to 20% of the purchase price of a property, funded by the Government through the Homes & Communities Agency. The buyer is required to raise the other 80% by obtaining a mortgage and providing a small deposit - in this case just 5% of the purchase price.
A property purchased under Help to Buy can be sold on the open market, with the equity loan repaid by way of a share of the proceeds. If the value of the property has increased the Government will share in this increase. If the value has gone down, the Government will only share the sale proceeds left over once the mortgage has been repaid.
The equity loan is interest free for 5 years, after which you will start to pay an annual fee. The equity loan must be repaid after 25 years or earlier if you sell your home.
For more information visit the Homes & Communities Agency website.
To find out more about the mortgage range available at Teachers Building Society, call the friendly mortgage team on 0800 378 669 or visit the mortgage pages.
* Full product detail:
Help to Buy mortgage deal
• 2.89% discounted variable rate for 3 years, then changing to our Standard Variable Rate for the rest of the term, currently 4.99%
• The overall cost for comparison is 4.7% APR
• Application fee of £99 is payable with the application but is refunded on completion
• A valuation fee is payable but is refunded on completion
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE