Help To Buy Mortgages

htb_logo_redHelp to Buy is a range of Government backed schemes to help people like you buy their own home. There are different types of home ownership schemes under the umbrella of Help to Buy. The Help to Buy Mortgage Guarantee scheme and the Help to Buy Equity Loan scheme. New Homes Mortgage Services can help you decide which scheme would be best suited for your personal situation and check if you are eligible.

HELP TO BUY EQUITY LOAN SCHEME

Help to Buy Equity Loans are available on new build homes in England with a purchase price of up to £600,000. They are available to all home buyers including first time buyers and people moving house, subject to eligibility criteria. You will have to put down a deposit of at least 5% of the property price and the Government will give you a loan for a minimum of 10% and up to 20% of the purchase price. You will need to pay this loan back to the Government after 25 years, or earlier if you sell the property. You will also need to arrange a mortgage of up to 75% to cover the rest of the cost of the property.

The details are slightly different for London where the maximum Government loan is up to 40%
An important point to know about Help to Buy is that because the Government has given you a loan to help you buy your new home, if you sell the property, some of the profit on the sale is paid back to the Government. How much you pay back to the Government is based upon the market value of your home when it is sold. So if you had a Help to Buy loan of 20% of the purchase price, you pay the Government back 20% of the sale price.

You also have some extra payments to the Government relating to the equity loan deal. You must pay £1 per month from the date you move in and after five years, you start to pay interest on the Government loan. Please see the link below for all the details on the how the scheme works.

For more details about Help to Buy visit www.helptobuy.gov.uk/equity-loans/
By clicking on the link, you will leave the regulated site of New Homes Mortgage Services LLP. Neither New Homes Mortgage Services LLP, nor Sesame Ltd, is responsible for the accuracy of the information contained within the linked site.

The new home you are buying must be your only residence and Help to Buy is not available to people looking for a Buy to Let mortgage.

Not every new home qualifies for Help to Buy. It is only available from new home builders who are registered with the scheme. Give us a call and we will quickly tell you if you are likely to qualify and point you in the right direction of Help to Buy builders in your area.

Call us on 01543 454144 or request a call back.

HELP TO BUY MORTGAGE GUARANTEE

For many years, lenders have avoided providing high percentage mortgages at 95%. This created a problem as it took so long to save the deposit that many clients felt they could not move home. The Government stepped in to set up a guarantee scheme with lenders which allows them to lend 95% mortgages again. Not all lenders have signed up to the scheme, but many of the high street lenders will provide these mortgages.

The great news is there is no Government loan to pay back! You only need a 5% deposit and you are ready to go, as long as you meet the conditions of the scheme. However, you are borrowing more from the bank and the interest rate is usually higher than a Help to Buy equity loan deal, so the monthly mortgage payments tend be higher than on the equity loan scheme.

If you already own your own home you can still be eligible for this scheme, but you must sell your existing property before completing on your new purchase. We will explain clearly how this can be done.

Please see the link below to the government site for some useful information
www.helptobuy.gov.uk/how-does-it-work
By clicking on the link, you will leave the regulated site of New Homes Mortgage Services LLP. Neither New Homes Mortgage Services LLP, nor Sesame Ltd, is responsible for the accuracy of the information contained within the linked site.

We advise clients to consider both options if they are available and your mortgage adviser will advise you on the best scheme for you.

We will not charge you a fee for arranging your mortgage and we will be paid commission by the lender.

Your property may be repossessed if you do not keep up repayments on your mortgage.
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Give us a call today or request a call back below, one 15 minute conversation is all it takes to provide everything you need to know about the best mortgage option for you.

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