Precise Mortgages offers capital raising for Help to Buy

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Precise Mortgages has revised its Help to Buy proposition and is now offering homeowners the option to remortgage and capital raise to repay part of their original Help to Buy Equity Loan.

It said that with more than 220,000 properties purchased and nearly £12.5bn lent in equity loans since the launch of the Help to Buy Equity Loan Scheme in 2013, there are now a growing number of borrowers who are likely to need the support of a financial intermediary.

As interest becomes payable on the government equity loan after the initial five-year interest free period ends, and, in many cases, with borrowers seeing their initial mortgage rate come to an end,

The change is part of the lender’s wider Help to Buy proposition which now gives customers the option to purchase, choose a pound-for-pound remortgage, capital raise to repay part of the equity loan or fully repay their loan.

Precise believes that, as Help to Buy capital raising will be new to many intermediaries, it has produced a guide to remortgaging and capital raising for Help to Buy which can be downloaded from its website.

Alan Cleary, group managing director for Precise Mortgages, said: “The Help to Buy scheme has been a huge success since its launch in 2013, helping hundreds of thousands of aspiring homeowners take their first step onto the property ladder.

“Our new simple and straightforward capital raising option could help these customers by allowing them to remortgage and repay part of the Equity Loan which will become payable after the initial five-year interest free period ends.”

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