What is Help to Buy?
The government has created help to buy scheme to help hard working people like you to get on to the property ladder, there are various forms of help to buy so please continue below.
Help to Buy ISA
If you are saving to buy your first home, save money into a Help to Buy: ISA and the government will boost your savings by 25%. So, for every £200 you save, you will receive a government bonus of £50. The maximum government bonus you can receive however is £3,000.
Help to Buy Equity Loan
With a Help to Buy: Equity Loan the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the remaining amount. You will not be charged loan fees on the 20% loan for the first five years of owning your home.
London Help to Buy Equity Loan
To reflect the current property prices in London, as of February 2016 the Government is increasing the upper limit for the equity loan it gives new home buyers within Greater London from 20% to 40%.
Help to Buy Guarantee Scheme
Mortgage Guarantee scheme works in exactly the same way as any other mortgage, except that under the scheme the Government offers lenders the option to purchase a guarantee on mortgage loans. Because of this support, lenders taking part are able to offer home buyers more high-loan-to-value (LTV) mortgages (80-95%). You will still be fully responsible for your mortgage repayments. So if you have a 5% deposit, you will need to take out and pay back a 95% mortgage.
For more information contact us today to find out more, and how we can help with your first property purchase.