Agency boss hits out at high Help to Buy mortgage rates
Wednesday 16th October 2013
An estate agent has lambasted the “rip off” mortgage rates in the Help to Buy scheme.
Brendan Cox, managing director of Waterfords which has branches in the home counties, said that buyers using the scheme will be penalised by its high costs. He said that some lenders are offering better rates and fees on 95% mortgages outside the scheme.
Last week, RBS (NatWest) became the first to reveal pricing of its Help to Buy mortgages, offering a two-year fixed rate deal at 4.99% with no fees. Halifax followed with a two-year fixed rate priced at 5.19% with a £999 fee.
Cox described the fees as ridiculous and said they make a mockery of the whole scheme.
He said: “There has been a hugely positive reaction to Help to Buy, which has got many people excited at the prospect of making a move.
“However, they will have to pay nearly twice the interest rates of anyone else.
“It is scandalous, and one of two things will happen: the scheme will fall flat and never actually get off the ground, or people will go with it because they have no other option, and will later find they cannot afford the repayments, which will result in a substantial rise in repossessions.
“We are supposed to be helping buyers, not setting them up to fail.”
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