Nationwide has launched a new range of shared equity mortgages tailored for the government’s London Help to Buy Equity Loan scheme.
Under the terms of the scheme, which launches on 1 February, borrowers can put down a 5% deposit and get an interest-free loan from the government of up to 40% of the property’s value.
The product range includes a 60% loan-to-value 2-year fixes at 1.89% with a £999 fee and 2.29% with no fee. To 75% LTV 2-year fixed rates start at 1.99% with a £999 fee and 2.39% with no fee.
The lender’s 5-year fixes start at 2.64% to 60% LTV with a £999 fee and 2.84% with no fee. At 75 per cent LTV rates stand at 2.74% with a £999 fee and 2.94% with no fee.
With 2-year trackers meanwhile shared equity products start at 1.64% with a £999 fee and 2.04% with no fee up to 60% LTV with no early repayment charges.
Henry Jordan, Nationwide’s Head of Mortgages, said: “Nationwide is launching a range of competitive shared equity products ahead of the launch of the expanded London Help to Buy scheme, enabling homebuyers to access a choice of mortgage deals with fee-free valuations as well as a £500 cashback for first-time buyers.
“The society has provided a substantial proportion of mortgages for the Help to Buy Equity Loan scheme since its launch, and will continue to do so as it is expanded, continuing to help first time buyers and home movers to secure a home of their own.”