The second phase of the Government's Help to Buy scheme launches today.
So far, Aldermore, Halifax, HSBC, NatWest, Royal Bank of Scotland and Virgin Money have announced they will be taking part in the scheme that aims to help the UK's borrowers secure a mortgage on a new build or existing property with only a 5% deposit.
At the moment few details are available as to what products the participating lenders will be offering.
NatWest and Royal Bank of Scotland confirmed they will be launching two and five-year fixed rate products, offering rates of 4.99% and 5.49% respectively, that charge no product fees. These products will be available up to 95% loan-to-value.
Halifax also announced it will be launching a 95% LTV Help to Buy product offering a rate of 5.19% fixed for two years. This product comes with a £995 fee.
The scheme works by the Government guaranteeing up to 15% of a property's value. This helps borrowers with only a 5% deposit secure a 95% mortgage through participating lenders.
Research from property website Zoopla reveals that the average deposit needed to buy a property under Help to Buy 2 has fallen by £33,325, to £11,108.
Additionally, in six out of the ten regions across England and Wales, the average deposit required to buy an eligible property has dropped below £10,000.
In the Moneyfacts Best Buys there are currently two products available to borrowers with a 5% deposit.
Yorkshire Bank is offering 5.49% fixed for three years. This product charges no fees and the incentive package includes a free valuation for all borrowers.
Hanley Economic Building Society, meanwhile, is offering 5.69% fixed for five years. This product includes a £300 fee and generous incentive package of refunded valuation fees (up to a maximum of £240) and a £250 rebate.
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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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