Help to Buy Mortgage
Helping first time buyers to own their own home with a Help to Buy Mortgage
Please note: The Help to Buy Equity Loan Scheme is due to end for new applicants on 31/10/2022.
What is the Help to Buy Scheme?
The Help to Buy (England) scheme is a government initiative designed to help first time buyers to get on the property ladder. Using Help to Buy, buyers purchasing a new-build home only have to have a 5% deposit. The government provides a 20% equity loan, meaning the buyer only has to secure a mortgage for the remaining 75% of the property value.
A 75% Loan to Value mortgage will be eligible for a wider variety of mortgage deals at better interest rates compared to a 95% Loan to Value, making the borrowing and repayments more affordable.
Who is eligible for Help to Buy?
In England, to be eligible for the Help to Buy scheme you must:
- Be aged 18 or over
- Be a first time buyer
- Be able to afford the fees and repayments
- Can provide a 5% cash deposit
There are also restrictions on the sort of properties that are eligible. For Help to Buy, the property must:
- Be a new build that will be your main residence
- Be sold by a Help to Buy registered home-builder
- Be the only property that you own
You can not use Help to Buy to purchase a second home or a buy to let property.
You can apply for Help to Buy as a solo buyer, if you meet all of the qualifying criteria. For those who are married, in a civil partnership or cohabitating, a joint application must be made.
What are the costs of Help to Buy?
In addition to the usual costs and fees of buying a home, such as mortgage arrangement fees and legal costs, you will also need to pay a monthly management fee of £1 for your Help to Buy equity loan. Additionally, you will be charged administration fees if you make changes to your equity loan, such as remortgaging or making a partial equity loan repayment.
Ready to discuss a Help to Buy Mortgage?
Our expert team is on hand to offer professional and tailored advice to ensure that you make the best decisions regarding your home finances. We are not tied to any specific lender so we can make sure that we help you to select the right help to buy mortgage. Call us for an initial, free of charge consultation. There is no obligation to use our services and you can meet in one of our offices in Horsham and Southwater, or arrange a phone based appointment.
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