Help to Buy loans issued and supported as a government scheme started five years ago. This new way of assisting home buyers purchase their property was considered a win for those who needed a little help in buying that first home a half decade ago. Now, fast forward five years and the interest payments on those Help to Buy equity loans are starting to escalate leaving many house owners searching for a remortgage for relief. There has been difficulty finding a suitable remortgage to ease the pressure of rising interest rate payments from lenders, until now.

Many lenders are now offering products which assist these home owners solve the problem of rising interest rate payments. They are high loan to value type loans, but are making it possible to keep the amount of rising interest they must pay to a minimum.

Interest rate payments on Help to Buy equity loans obtained five years ago start at 1.75%. This is not only a challenging rate to start paying, but it is also just the beginning. Every year following the fifth year of ownership, the rate goes up by 1.0% plus the Retail Prices Index (RPI). This leaves house owners only five years into residency of that home possibly paying more than 3.0% after the second year beyond their first interest payments.

Secondly, the Help to Buy plan for many house owners would have also included a five year fixed original mortgage loan. So, now those house owners would be converted to the lender standard variable rate loan at the same time their interest payments begin on the equity loan.

House owners who obtained a Help to Buy loan five years ago are now facing a big opportunity and many lenders are making it possible to ease the pain of high interest payments with a suitable new type of remortgage deal.