Help to Buy is a 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.
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.
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
For further advice on eligibility criteria, which lenders are offering the scheme and what would best suit you, please contact us on 0115 882 0441 for free impartial and no obligation advice.