Leeds Building Society has become the first lender to accept remortgage applications from Help to Buy Equity borrowers.

The mutual will accept remortgages on its existing Help to Buy products which include:

• A two year discount Help to Buy mortgage at 1.99% available up to 75% loan to value (LTV)
• A two year fixed rate Help to Buy mortgage at 2.34% available up to 75% LTV
• A five year fixed rate Help to Buy mortgage at 2.99% available up to 75% LTV

The Leeds is offering Help to Buy Equity homeowners the opportunity to remortgage, and retain their existing loan size, subject to valuation, keeping the Government equity loan.

Alternatively, they can choose to redeem the Government equity loan as part of their remortgage up to 90% LTV and buy the property outright.

The first Help to Buy Equity borrowers bought their homes in May 2013, and between then and September 2014 more than 31,500 properties have been purchased through the scheme.

“We have seen strong demand for our Help to Buy mortgages since these were launched in August 2013,” said Martin Richardson (pictured), Leeds Building Society’s general manager for business development.

“We’re now offering those first customers coming off their initial products the opportunity to re-mortgage onto a competitive new deal. These offers include two and five year fixed rates and a two year discount mortgage up to 75% LTV.

“Borrowers wanting to redeem the Government equity loan as part of their remortgage can choose any of our competitive range of home loans up to 90% LTV.

“Now is an ideal time to remortgage as rates have never been lower. When Help to Buy Equity was launched in May 2013 the average two year fixed rate mortgage was 3.80% but by February 2015 this had fallen to 3.14% – on an average £140,000 mortgage with a 25 year term this would bring down monthly repayments by more than £49 per month.

“In addition, the benefits of a low £199 fee and a free valuation reduce upfront costs for the type of borrowers that Help to Buy was introduced to support.

“Unlike some lenders, Leeds Building Society does not differentiate between first time buyers and home movers and this attractive deal is now available to both.”

Jeremy Duncombe, director at Legal & General Mortgage Club, said: “This is a fantastic move by Leeds Building Society, demonstrating their support for the market and echoing the innovation they have shown recently in their product range.

“Many Help to Buy customers face a difficult choice when their initial mortgage deal ends, and these options allow them to consider the best alternative for them. Hopefully other lenders will follow suit.”