This update replaces affordability tests based on an assumed standard variable rate of 4.8%.
The updated sustainability calculator allows brokers and financial advisers to use the mortgage interest rates they expect specific lenders to charge after any discounted or fixed period comes to an end.
This replaces affordability tests based on an assumed standard variable rate of 4.8%.
This hopes to result in fewer loan applications being declined after the customer has their mortgage offer.
Will German, Help to Buy director at Homes England, said: “Brokers and advisers play a vital role in helping customers to use and understand Help to Buy.
"We’ve listened to their feedback and have updated the Help to Buy: Equity Loan calculator to help them do more realistic affordability checks for their clients before they formally apply for their equity loan.
“We have unlocked the calculator so they can see, select and enter the most likely follow-on rate from their recommended lender.
“Our customer feedback highlights how important brokers and financial advisers are to customers.
"This calculator update will allow them to improve the service they offer their customers.
“It also gives potential Help to Buy: Equity Loan customers more certainty about the financial advice they receive, what they can afford and the likely outcome of their loan application.”
Jane Benjamin, director of mortgages at PMS and Sesame, added: “It’s great news that the constraints that brokers may have felt with having the second affordability check in place have now been lifted.
“Advisers can now more confidently consider a wider range of lenders at the very beginning of the time-pressured application journey.
"It’s fantastic to be working with Homes England to implement positive change supporting brokers and customers.”
