One of the few lenders that offers to remortgage Help to Buy borrowers is reducing the rate on one of its products.

Newbury Building Society has lowered the rate on its 85 per cent loan to value Help to Buy remortgage to 2.74 per cent, down from 2.99 per cent. It is fixed for three years.

The lender’s Help to Buy remortgage product range, which also includes a variable option, is suitable for those looking for a like-for-like remortgage, and a remortgage in which the borrower wants to partially repay, or completely repay, their government loan

Mortgage overpayments are allowed as part of the deal, and the Society will pay one standard valuation fee.

Lending manager at Newbury Building Society Roger Knight points out that, because the Help to Buy remortgage market is yet to reach maturity, very few remortgage products are available to Help to Buy borrowers, especially those looking to staircase out of their government loan.

“By offering a partial staircase, we release the pressure of having to remortgage away from the scheme in its entirety; a welcome reprieve for those who are unable to repay the government loan in its entirety,” he says.

“By doing so, we hope to continue assisting customers achieve their homeownership ambition.”