The scheme is an extension of the FirstBuy scheme, which has now ended, with equity loans available to all home buyers purchasing their only property in England up to a maximum value of £600,000.
The Nationwide is now accepting applications ans buyers must have a 5% deposit, based on the purchase price. The property is part financed, up to 20% and a minimum of 10%, by an equity loan from the Homes and Communities Agency.
‘We are accepting Help to Buy applications as we are keen to support the government's efforts in helping the mortgage market to move forward. It is another way that Nationwide customers can access great deals to help them onto, or move up, the property ladder,’ said Tracie Pearce, head of group mortgages at Nationwide.
The building society is also is increasing the amount borrowers can overpay on their mortgage by introducing products that allow borrowers to overpay up to 10% of their mortgage every year without incurring an early repayment charge.
Previously, customers were able to overpay a maximum of £500 a month, irrespective of their loan size. It means borrowers may be able to repay their mortgage earlier than previously planned. Mortgages reserved from today will carry the 10% a year overpayment feature. Existing products are unaffected.
‘The move to a 10% a year overpayment allowance means borrowers may be able to repay their mortgage more quickly than they had previously anticipated. Our competitive mortgage rates mean customers are enjoying some of the lowest ever monthly mortgage payments, giving many of them the opportunity to use any extra cash,’ explained Pearce.
