The West Brom unveils remortgages for Help to Buy borrowers

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The West Brom has introduced remortgage deals specifically for customers who purchased their home under the government’s Help to Buy: Equity Loan scheme.

The building society has a selection of fixed rate mortgages over two, three and five year terms where the equity loan is retained. They are available directly from the West Brom or via its intermediary partners.

All products are at a loan to value ratio of up to 75% and come with a free valuation.

There is also a £500 cashback payment, which could be put towards legal expenses or administration costs on the equity loan which are payable to Homes England.

An alternative option is for the customer to apply for a product from the West Brom’s standard remortgage range, increase their total borrowing and repay the equity loan in full.

Richard Scott, the West Brom’s head of intermediaries, said: “It has been five years since Help to Buy was first introduced. This means many borrowers are facing important decisions regarding both their equity loan, which now becomes interest bearing, and their original mortgage deal.

“The West Brom has a proven commitment to helping people secure a property of their own. Entering the remortgage market for Help to Buy will enable us to broaden our appeal to an increasing number of borrowers.”

Rates for Help to Buy remortgage customers start from 2.29% for a two year fix. This product has a completion fee of £999, but there is a fee-free option with an interest rate of 2.54%.

The same options – with and without completion fees – are available on both the three year and five year fixed rate mortgages. Three year fixes start from 2.54% and five year fixes from 2.74%.

Scott added: “The options for Help to Buy customers looking to remortgage are currently fairly limited with not that many providers catering for their specific needs.

“We are stepping forward with a strong product offering and adding some additional competition to this market segment, which can only be a good thing from the customer’s perspective and for intermediaries looking to provide guidance for their clients.”

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