Help To Buy Mortgages

Help to Buy is a  Government backed scheme to help people buy their own homes. 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. We can help you decide which scheme would be most 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 and each region has a purchase price cap. They are available to first time buyers only, 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 regional price caps can be found at Help to buy regions.

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

The Government set up a guarantee scheme with lenders which allows them to lend 95% mortgages. Not all lenders are on the scheme, but many of the high street lenders will provide these mortgages.

The great news is you only need a 5% deposit and you are ready to go, as long as you meet the conditions of the scheme.  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 tends to 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 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 most suitable scheme for you.

Ready to talk to an advisor?

or give our team a call on

01543 464 144