Government lifts help-to-buy restriction
29th August 2019
New measures have been introduced to make it easier for help-to-buy borrowers to take out 35-year mortgages.
The changes, which took effect on 28 August 2019, were introduced on the back of remortgaging difficulties faced by homeowners using the help-to-buy scheme.
Many people who used the scheme previously found it tough to remortgage beyond 25 years after their fixed-rate mortgage had expired.
The move aims to provide more choice for those who are looking to remortgage under the help-to-buy scheme, and attract new entrants to the market.
Will German, director of help-to-buy at Homes England, said:
"This move opens up the help-to-buy remortgage market to more lenders. It offers more choice, more options and better outcomes for these customers.
"Under our new policy, if a customer's remortgage runs for longer than the standard 25-year help-to-buy equity loan term, we will automatically extend ours."
Esther McVey, housing minister, added:
"I want our help-to-buy scheme to work for homeowners so we are giving people the freedom and flexibility to take out longer mortgages, if it suits their needs."
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