Low mortgage rate products are launched in support of the MIG scheme.

Relatively few lenders have managed to get new low mortgage rate deals in place in time for the launch of the Government NewBuy Guarantee scheme this week.  However Barclays, Nationwide and Natwest have all signed up and have managed to put some good offers together in time.

Barclays offer a 2 year fixed rate deal at 4.99 %, the lender has said that they believe the scheme could help to boost UK property market confidence, support new housing and provide positive consequences for the economy.

Nationwide offer a 3 year fixed rate mortgage at 5.69 % and a 5 year deal at 5.99 % but only through mortgage brokers such as Deal Direct. NatWest also offer 2 and 5 year fixed rate deals at 4.29 % for 2 years and 4.99 % for 5 years.

Recent reports suggest that at the moment few other lenders are willing to price deals at rates below 5 %, many are waiting to see how the scheme fairs before following suit.

Under the new scheme lenders offer 95 % loan to value low mortgage rate products for new build properties. These deals are to be set against a new mortgage indemnity guarantee funded by both UK house builders and the UK Government.

HSBC commented on the scheme advising that they have not yet launched any new low mortgage rate products in support of the scheme as they are considering their position. The lender advises that they currently have no definitive plans as they are waiting to see how they can best work with the scheme.

Dear Direct can help you to get a low rate mortgage deal from the three lenders already signed up to the scheme. Contact our skilled advisers now who will work on your behalf to get you the most competitive mortgage rate on offer.