Help to Buy Equity Mortgage Update - Remortgages Available

Great news! Leeds Building Society is ready to accept Help to Buy Equity re-mortgage applications.
 
The following message contains important information regarding the products available and the process to follow when submitting applications.

Background:
 
The first Help to Buy Equity customers purchased their New Build properties in May 2013. 
 
For customers coming to the end of their initial products, the Society has developed its proposition to accept applications from those looking to re-mortgage.
 
Recognising that each customers individual circumstances will be different, Leeds have developed a variety of options to suit their needs. 
 
Option 1: Keep Government Equity, but re-mortgage 1st Charge
 
This option is applicable where:-

A) The customer re-mortgages the existing 1st charge to the Society, retaining the full value of the Government's Equity loan.
 
The size of the equity loan will remain the same as at original purchase. Please provide a copy of the ATP along with the re-mortgage application.
 
B) Due to capital appreciation since purchase, the customer wishes to remortgage the 1st charge to the Society, but capital raise to repay some of the Government's Equity loan.
 
The size of the equity loan will reduce by the value being capital raised. Please enter this value in the appropriate section, as outlined below. Please provide a copy of the ATP along with the re-mortgage application.
 
Help to Buy scheme rules imply that repayment of the Governments Equity loan must be made in 10% increments.
 
What products are available?
 
For these customers, all existing Help to Buy Equity products up to a maximum of 75% LTV are available.
 
How do I apply for my client?
 
Apply in the same way you would for a Help to Buy purchase application and provide information on the Government equity loan, as follows,

• At the DIP stage and when submitting the application, enter the size of the equity loan in the 'Additional Information' section in the following format: "English or Welsh Help to Buy Remortgage - £xx,xxx Equity Loan". 
• An amount equivalent to 4% of the equity loan (calculated on a monthly basis), should be included in the 'Significant Outgoings' section e.g. Equity Loan £40,000 x 4% / 12 = £133.33 per month.
• Once the Offer has been issued, approval to re-mortgage must then be obtained from Post Sales Agent, who will then confirm to the Conveyancer that the re-mortgage can complete. 

See attached documents for example of capital raising
and details for appropriate Post Sales Agent.

Option 2: Re-mortgage existing 1st Charge, raising capital to buyout Government Equity
 
This option is available to customers wanting to completely buyout the Government Equity element through a capital raising re-mortgage to the Society.
 
What products are available?
 
For these customers, all Residential products up to a maximum of 90% LTV are available.

How do I apply for my client?
 
Apply as a standard residential 'Re-mortgage'. For the purpose of the re-mortgage, select 'Purchase of Interest in Property'.
 
In the additional notes section of the DIP, highlight reasons for capital raising as 'Help to Buy Government Buyout'
 
The Conveyancer will also have to contact the appropriate Post Sales Agent to arrange repayment of the Government's Equity Loan.