Mortgages

Govt Help To Buy

Help To Buy

New Government-backed initiative – Help to Buy

Help to Buy is a new government-backed initiative set up to help first-time buyers and those looking to move up the property ladder to purchase a property with as little as a 5% deposit.

Help to Buy is made up of two schemes which are scheduled to run for 3 years:-

  1. Equity Loan – available on new build properties – this scheme has been available from April 1st 2013
  2. Mortgage Guarantee – available on new build and existing properties now

 
Equity loan

With a deposit of 5%, the Help to Buy Equity Loan scheme allows you to borrow an additional 20% of the purchase price of the property from the government. The loan is interest free for the first 5 years.

Help to Buy equity loans are available for purchasers who will need to take out a mortgage of 25% or more of the full property purchase price.

We are able to help you calculate how much your property within this scheme will cost you and provide you with guidance on what mortgages will be available.

 
What properties are included?

To qualify for the scheme, Help to Buy properties must be:-

  1. Priced below £600,000
  2. Full ownership
  3. New build
  4. In England – the scheme currently excludes Wales and Scotland

The government equity loan scheme is only available from approved participating house builders many of which we are aware of.

 
Who is eligible?

To be eligible for a Help to Buy equity loan property you must:-

  1. Be able to demonstrate access to savings or funds to pay for the required deposit which may be between 5% and 55% of the purchase price, legal fees, stamp duty and costs of moving
  2. Be purchasing a property costing £600,000 or less
  3. Have a good credit history
  4. Take out any mortgage with a qualified lender (e.g. a bank or building society)
  5. Remove your name(s) from any other property deed at or prior to the point of completion of your new property if you are a home owner wishing to buy a larger property for your family
  6. Applicants must be 18 years or over
  7. It is not possible to sublet your Help to Buy Home
  8. Existing properties cannot be rented out to buy a second home through the Help to Buy scheme

 
How do I apply?

  1. Contact us to see how we can assist you with your application

 
Mortgage Guarantee

This scheme will be available now If you are looking to buy a residential property with a deposit of as little as 5% the Help to Buy Mortgage Guarantee scheme could help you to purchase your dream home.

Mortgage Guarantee aims to increase the availability of mortgages for buyers with small deposits. The government will look to provide £12 billion in guarantees, which could enable up to £130 billion in higher loan-to-value mortgages (subject to the final scheme design).

The Help to Buy Mortgage Guarantee scheme is available:

  1. On both new build and previously owned properties up to £600,000 in value
  2. To first time buyers and existing home owners


YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE


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