Last Updated: 10/10/2013
Tags: Help To Buy
Help To Buy
Help to Buy is a government scheme which could make getting on to, or moving up, the housing ladder more accessible. It helps existing home owners and first time buyers purchase a home with as little as 5% deposit.
There are two ways to purchase a property up to the value of £600,000 using Help to Buy:
•Mortgage Guarantee - available on both pre-owned and new build properties with a standard mortgage of up to 95% of the purchase price.
•Equity Loan - available on new build properties only using a government equity loan of 20% of the purchase price plus a traditional mortgage.
Mortgage Guarantee - Help to Buy
From October 2013, Help to Buy has been extended to make it possible to purchase any property under £600,000 - be it a new build or pre-owned home - with as little as a 5% deposit.
How does the Mortgage Guarantee scheme work?
The process of applying and repaying the mortgage is the same as it would be for a standard mortgage - there really is very little difference for the buyer. The scheme is intended to increase the availability of mortgages at competitive interest rates for buyers with a minimum of 5% deposit. The government are going to make this possible by guaranteeing repayment of the mortgage to the lender, this will be dealt with behind the scenes by participating lenders. There will be no additional paperwork or charges for the buyer.
Below is a quick checklist of who is eligible for the scheme:
•Available to both existing home owners and first-time buyers
•Buyers need a minimum of a 5% deposit
•Available on all previously owned and new build properties up to the value of £600,000
•Must be your only property
•Available for properties in the UK
•Borrowing from a participating mortgage lender
If you would like to know more about the "Help to Buy" scheme, please call us on 0207 449 9222 and speak to one of our trained sales advisers.