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."
Talk to us about your property.