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<p>The changes in the rate of inflation and the impact this will have on homeowners
is of great importance. Help to Buy customers pay no interest for the first five years
of their loan. Interest fees that begin in year 6 start at 1.75% and increase each
year by CPI + 2%. Affordability assessments are carried out by both the main mortgage
provider and our Help to Buy Agents at the outset of the loans. These checks assess
and stress-test the borrower’s long-term ability to meet their mortgage repayments
and future fee payments. We are, however, monitoring the situation closely and will
continue working with Homes England ensure we have the correct policies in place to
support homeowners.</p>
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