From today Nationwide Building Society will accept applications from borrowers wanting to participate in the Government’s Help to Buy scheme.
The decision of the UK’s largest building society to enter the scheme could potentially benefit tens of thousands of first time buyers.
The scheme offers equity loans of up to 20% to new build home buyers, who must contribute a deposit of at least 5%, on properties valued at up to £600,000.
Tracie Pearce, head of group mortgages at Nationwide, said the building society was accepting Help to Buy applications as they were keen to support the Government’s efforts in helping the mortgage market to move forward.
First-time buyers pay a reduced fee of £400 for a 2.54% two-year fixed rate for up to 7% LTV with a £900 arrangement fee.
A feeless two-year product, with an interest rate of 2.94pc, and a three-year product are also available.
Nationwide Building Society also announced that they will raise the overpayment cap on new mortgages, allowing borrowers to repay up to 10pc of mortgage value per year without penalty.
