Lenders in new boost for Help to Buy deals
The battle to offer low deposit mortgages has stepped up after a lender unveiled new deals under the Government's Help to Buy scheme and another announced plans to join the initiative.
Santander said that from today it will offer a range of fee-free Help to Buy mortgage products for people with a deposit as low as 5%, as the Post Office also confirmed its intention to offer deals through the scheme.
Santander's new Help to Buy range includes a two-year fixed-rate deal with a rate of 4.99% and a five-year fix at 5.49%. Santander is also launching a two-year variable rate tracker at 4.99%.
The Post Office said it plans to join the new phase of the Government's Help to Buy Scheme with its financial services partner, Bank of Ireland UK..
The announcements were made as a Bank of England report revealed that lenders are expecting to see a significant increase in mortgage availability.
Lenders including Royal Bank of Scotland, NatWest, Halifax, Bank of Scotland, HSBC and Virgin Money have already joined the Help to Buy scheme.