Nationwide unsure about Help to Buy

The Nationwide building society has cut some mortgage interest rates for borrowers who are unable to raise a large deposit but they are still undecided whether they are going to join the government backed Help to Buy scheme which is set to launch in the new year.

The Help to Buy scheme is encouraging more transactions by lending up to 15% on a government backed loan to go towards the deposit for the property.

The building society’s new rate for a two-year fixed rate deal for a buyer offering a 10% deposit is 3.99%, with a £900 fee, or a £400 fee for first-time buyers. A number of lenders offer mortgages at this loan-to-value level.