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Help to Buy

Montserrat Wight

Spanish ​teacher
London
​Mortgage ​customer since 201​5

Help to Buy

The Help to Buy scheme was introduced to assist those who are struggling to raise a deposit to purchase a home. The Government recognised that with house prices on the rise, people were finding it increasingly difficult to put enough money aside, and raising a 10% deposit was becoming impossible for many aspiring first-time buyers.

How does it work?

Once you have saved a 5% deposit, eligible candidates can borrow up to 20% of the value of the property (or up to 40% for Help to Buy properties in London) through this government scheme. You will therefore need a mortgage to cover the remaining cost of the property.

How much does the loan cost?

The equity loan is interest free for the first five years. After that, you will pay a fee of 1.75%, rising annually by the increase (if any) in the Retail Price Index (RPI) plus 1%.

What if I want to sell?

If you wanted to the sell the property, you could do with without restriction. Upon completion of the sale, the equity loan would be repaid by way of a share of the proceeds. If you were to continue living in the property, however, the equity loan would need to be repaid after the maximum 25 years.

Am I eligible?

Yes, if you can afford a 5% deposit and are looking to buy a new build property worth £600,000 or less (£300,000 in Wales) .

How do I proceed?

If you are in the ​England, you​ will need to contact your local Help to Buy Agent for more information about eligible properties. Your mortgage application will be subject to credit referencing, underwriting and a property valuation. 

Visit: www.helptobuy.org.uk for more information and to find your local agent.

Teachers Building Society has also signed up to support the new London Help to Buy scheme which provides an equity loan of up to 40% for buyers trying to get onto the property ladder in London, compared to the 20% across England.

Visit: www.helptobuylondon.co.uk for more information​.

If you are in Wales you need to contact the Help to Buy - Wales team for more information and eligible properties. Your mortgage application will be subject to credit referencing, underwriting and a property valuation.

 Visit:www.helptobuywales.co.uk for more information and to find your local agent.

Help to Buy ​Mortga​ges

2 Year Variable Rate Mortgage 20% Deposit 2.74% Variable
2.74% 5.24% 5.0% APRC 80% £899 £99

Key Features

Variable rate

A variable rate, currently ​2.74%, which is discounted by 2.50% from our Standard Variable Rate for the first 2 years. It then changes to our Standard Variable Rate, which is currently 5.24%, and remains on our variable rate terms for the rest of the mortgage.

The overall cost for comparison is 5.0% APRC representative.

What you Pay

  • Daily interest.
  • An application fee of £99 (non-refundable) is payable with the application.
  • An arrangement fee of £899 is payable with the application.
  • A valuation fee is payable for all properties worth £800,000 or more.

Early repayment charge

An Early Repayment Charge of 3% on the amount repaid will be applied for the duration of the product term. You can overpay by up to 10% of the loan outstanding per calendar year without charge.

What we Pay

  • The first valuation fee for properties worth less than £800,000
  • £100 cashback for NEU members upon completion.

Who can apply and more information

 

  • Available for home purchase applications only.

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

Representative Example

A mortgage of £157,000 over 29 years initially on a discounted variable rate of 2.74% (equal to a 2.50% discount off our SVR)  for 2 years and then on our Standard Variable Rate of 5.24% for the remaining term, would require 24 monthly payments of £654.37 and 324 monthly payments of £864.15.

The total amount payable would be £296,926.80 made up of the loan amount plus interest (£138,701.30) with a funds transfer fee of £25, mortgage application fee of £99, mortgage arrangement fee of £899, legal fees of £117.50 and a mortgage exit fee of £85.

The overall cost for comparison is 5.0% APRC representative.

Call us today on 0800 378 669

This product may be withdrawn or amended at any time, without prior notice

3 Year Fixed Rate Mortgage 20% Deposit 3.59% Fixed
3.59% 5.24% 5.0% APRC 80% £899 £99

Key Features

Fixed rate

A fixed rate of ​3.​​59% for the first 3 years (fixed until 14/1​2/2021). It then changes to our Standard Variable Rate, which is currently 5.24%, and remains on our variable rate terms for the rest of the mortgage.

The overall cost for comparison is 5.0% APRC.

 

 

What you Pay

  • Daily interest.
  • An application fee of £99 (non-refundable) is payable with the application.
  • An arrangement fee of £899 is payable with the application.
  • A valuation fee is payable for all properties worth £800,000 or more.

Early repayment charge

An Early Repayment Charge of 3% on the amount repaid will be applied for the duration of the product term. You can overpay by up to 10% of the loan outstanding per calendar year without charge.

What we Pay

  • The first valuation fee for properties worth less than £800,000.
  • £100 cashback for NEU members upon completion.

Who can apply and more information

  • Available for home purchase applications only.

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

Representative Example

A mortgage of £157,000 over 29 years initially on a fixed rate of 3.59% (ending on 14th December 2021) and then our Standard Variable Rate of 5.24% for the remaining term, would require 38 monthly payments of £726.64 and 310 monthly payments of £862.50.

The total amount payable would be £296,228.31 made up of the loan amount plus interest (£138,002.81) with a funds transfer fee of £25, mortgage application fee of £99, mortgage arrangement fee of £899, legal fees of £117.50 and a mortgage exit fee of £85.

The overall cost for comparison is 5.0% APRC representative.

Call us today on 0800 378 669

This product may be withdrawn or amended at any time, without prior notice

3 Year Fixed Rate Remortgage 20% Deposit 3.59% Fixed
3.59% 5.24% 5.0% APRC 80% N/A £99

Key Features

Fixed rate

A fixed rate of ​3.​​59% for the first 3 years (fixed until 14/1​2/2021). It then changes to our Standard Variable Rate, which is currently 5.24%, and remains on our variable rate terms for the rest of the mortgage.

The overall cost for comparison is 5.0% APRC.

What you Pay

  • Daily interest.
  • An application fee of £99 (non-refundable) is payable with the application.
  • A valuation fee is payable for all properties worth £800,000 or more.

Early repayment charge

An Early Repayment Charge of 3% on the amount repaid will be applied for the duration of the product term. You can overpay by up to 10% of the loan outstanding per calendar year without charge.

 

What we Pay

  • The first valuation fee for properties worth less than £800,000.
  • For remortgage applications, legal fees will be paid when using our appointed solicitor. For non-standard remortgages (i.e. ​Shared Ownership, transfer of equity, unencumbered property), we will pay £250 towards the legal costs and this will be sent directly to your solicitor on completion of the mortgage.
  • £100 cashback for NEU members upon completion.

Who can apply and more information

  • Available for remortgage applications only.

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

Representative Example

A mortgage of £157,000 over 29 years initially on a fixed rate of 3.59% (ending on 14th December 2021) and then our Standard Variable Rate of 5.24% for the remaining term, would require 38 monthly payments of £726.64 and 310 monthly payments of £862.50.

The total amount payable would be £296,228.31 made up of the loan amount plus interest (£138,002.81) with a funds transfer fee of £25, mortgage application fee of £99, mortgage arrangement fee of £899, legal fees of £117.50 and a mortgage exit fee of £85.

The overall cost for comparison is 5.0% APRC representative.

 

Call us today on 0800 378 669

This product may be withdrawn or amended at any time, without prior notice

5 Year Fixed Rate Mortgage 20% Deposit 3.99% Fixed
3.99% 5.24% 4.9% APRC 80% £899 £99

Key Features

Fixed rate

A fixed rate of ​3.​​99% for the first 5 years (fixed until 14/​​1​1/2023). It then changes to our Standard Variable Rate, which is currently 5.24%, and remains on our variable rate terms for the rest of the mortgage.

The overall cost for comparison is 4.9% APRC.

What you Pay

  • Daily interest.
  • An application fee of £99 (non-refundable) is payable with the application.
  • An arrangement fee of £899 is payable with the application.
  • A valuation fee is payable for all properties worth £800,000 or more.

Early repayment charge

An Early Repayment Charge of 3% on the amount repaid will be applied for the duration of the product term. You can overpay by up to 10% of the loan outstanding per calendar year without charge.

 

What we Pay

  • The first valuation fee for properties worth less than £800,000.​
  • £100 cashback for NEU members upon completion.

Who can apply and more information

  • Available for home purchase applications only.
  • Your home may be repossessed if you do not keep up repayments on your mortgage

    Representative Example

    A mortgage of £157,000 over 29 years initially on a fixed rate of 3.99% (ending on 14th November 2023) and then our Standard Variable Rate of 5.24% for the remaining term, would require 61 monthly payments of £762.08 and 287 monthly payments of £858.97.

    The total amount payable would be £294,253.99 made up of the loan amount plus interest (£136,028.49) with a funds transfer fee of £25, mortgage application fee of £99, mortgage arrangement fee of £899, legal fees of £117.50 and a mortgage exit fee of £85.

    The overall cost for comparison is 4.9% APRC representative.

    Call us today on 0800 378 669

    This product may be withdrawn or amended at any time, without prior notice

    5 Year Fixed Rate Remortgage 20% Deposit 3.99% Fixed
    3.99% 5.24% 4.9% APRC 80% N/A £99

    Key Features

    Fixed rate

    A fixed rate of ​3.​​99% for the first 5 years (fixed until 14/​​1​1/2023). It then changes to our Standard Variable Rate, which is currently 5.24%, and remains on our variable rate terms for the rest of the mortgage.

    The overall cost for comparison is 4.9% APRC.

    What you Pay

    • Daily interest.
    • An application fee of £99 (non-refundable) is payable with the application.
    • A valuation fee is payable for all properties worth £800,000 or more.

    Early repayment charge

    An Early Repayment Charge of 3% on the amount repaid will be applied for the duration of the product term. You can overpay by up to 10% of the loan outstanding per calendar year without charge.

    What we Pay

    • The first valuation fee for properties worth less than £800,000.​
    • For remortgage applications, legal fees will be paid when using our appointed solicitor. For non-standard remortgages (i.e. ​Shared Ownership, transfer of equity, unencumbered property), we will pay £250 towards the legal costs and this will be sent directly to your solicitor on completion of the mortgage.
    • £100 cashback for NEU members upon completion.

    Who can apply and more information

  • Available for remortgage applications (not available for Help to Buy).
  • Your home may be repossessed if you do not keep up repayments on your mortgage

    Representative Example

    A mortgage of £157,000 over 29 years initially on a fixed rate of 3.99% (ending on 14th November 2023) and then our Standard Variable Rate of 5.24% for the remaining term, would require 61 monthly payments of £762.08 and 287 monthly payments of £858.97.

    The total amount payable would be £294,253.99 made up of the loan amount plus interest (£136,028.49) with a funds transfer fee of £25, mortgage application fee of £99, mortgage arrangement fee of £899, legal fees of £117.50 and a mortgage exit fee of £85.

    The overall cost for comparison is 4.9% APRC representative.

    Call us today on 0800 378 669

    This product may be withdrawn or amended at any time, without prior notice

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    YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE