Galliard Homes Limited

Comparing Help to Buy Mortgages

Help to Buy, Mortgages, First Time Buyer, Property, Galliard Homes

This article references a previous version of the Help to Buy Scheme. For information on the latest version, Help to Buy: Equity Loan 2021 - 2023, please refer to our guide here.

Following the Brexit Vote and in the wake of the introduction of an all-time-low interest rate, hopeful first-time buyers are keeping their fingers crossed for opportunities to secure a new home. But the first hurdle to jump is, of course, settling on a mortgage.

An Introduction to Help to Buy

Please refer to the Government’s website for all up-to-date information on Help to Buy.

Mortgage Comparisons

The majority of Help to Buy mortgages, or other mortgages suited to first-time buyers, generally tend to be fixed-rate, typically between a period of two to five years, rather than a variable, tracker or discount mortgage. This gives buyers a sense of security that their interest rate will not fluctuate, making it easier to budget rather than having the uncertainty that it might rise.

Many high street lenders offer special Help to Buy rates, usually varying between 3% and 6% annual percentage rate of charge (APRC). Buyers are encouraged to do their research and shop around to help them find the best deal instead of simply turning to their local bank.

Tip 1: Comparison sites to take a look at for Help to Buy mortgages include money.co.uk and knowyourmoney.co.uk. Found one that takes your fancy? Use Money Saving Expert’s mortgage calculator to see what you will be paying each month and how much you’ll repay over the full term.

Banks offering Help to Buy include Barclays, Halifax, Natwest/RBS, Santander, Lloyds Bank and HSBC. According to knowyourmoney.co.uk, HSBC is currently offering the best deal with an initial rate of 3.69%* until 2018.

Barclays and Halifax also have an initial rate and APRC of or less than 4%* with a two-year fixed rate. For those with an equity loan in need of a LTV mortgage of 75%, Natwest/RBS offers the lowest current APRC of 3.8%*.

Tip 2: The best mortgage doesn’t always have to be the one with the lowest rate. Lenders sometimes offer low rates but tag on a hefty arrangement fee and/or add in charges at the end of the mortgage such as early repayment charges and exit fees.

Saving for your deposit? Take a look at our guide.

*Figures are subject to change.

Edited: 27th April 2022