Help to Buy loophole closed to benefit home owners

People looking to buy with Help to Buy properties can now take out 35 year mortgages for first time.

The Government has moved to close a loophole which has seen purchasers using the Help to Buy scheme facing difficulties and uncertainty if they wanted to take out a mortgage with a term of more than 25 years.

Under the changes, which are taking effect immediately, people will have the freedom to reduce their monthly mortgage repayments by spreading their borrowing over a longer period.

The change reflects a wider movement in the mortgage market. At the moment, if you’re remortgaging after 2-5 years at the end of a fixed rate period, Help To Buy home owners cannot in practice take out a mortgage that goes on for more than 25 years after the original property purchase date.

Now, the change opens up the Help to Buy re-mortgage market for more lenders, giving customers more choice, potentially paving the way to more competitive deals.

‘We are determined to open up the dream of home ownership to the next generation and our Help to Buy schemes have already been used more than 500,000 times by families to get a leg up onto the property ladder,’ said Housing Minister Esther McVey.