The UK government is in talks with large investors to sell its £7.4bn Help to Buy loan book, ahead of receiving its first fees from borrowers in April.
Under its flagship Help to Buy equity loan scheme, the government has offered borrowers an equity loan of up to 20% of the value of a newly built home, or 40% in London.
The loans are interest-free for five years but after that borrowers must begin to pay a fee of 1.75% of the value of their loan, increasing each year by RPI plus 1%. Government officials began exploring whether investors would be interested in buying the loan book in November, according to one person familiar with the matter.
