Two of the biggest lenders in Britain have curbed the Help to Buy schemes on their own and restricted the accessibility to their products that involve the scheme.
Nationwide announced that it will no longer offer mortgages on the Help to Buy Equity Loan scheme to ‘second-steppers’. Families seeking to move to a larger home will no longer be able to get onto the Help to Buy scheme through the building society.
On the other hand however, Nationwide have joined the Ministry of Defence’s Armed Forces Help to Buy which gives servicemen and women the chance to borrow up to half of their salary, capped at £25,000 as long as it is used to put down a deposit on a house.
It can also be used however if an applicant’s home needs altering to accommodate a changed family or medical situation.
Halifax has restricted potential borrowers from applying for Help to Buy Equity Loans through brokers and advisors, and will instead have to apply directly through a branch.
This appears to be a response to the fears of Help to Buy stoking a housing bubble.
Dominik Lipnicki of Your Mortgage Decisions, is reported to say that “this is a really surprising move by Halifax. The scheme has been responsible for such a small amount of lending and has had no material impact on the much argues about heat in the housing market… The hysteria around Help to Buy baffles me. I very much hope this move is not the start of others following suit.”
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