Help To Buy Explained:
The Help to Buy initiative was introduced by the UK government in April 2013 to allow first time buyers and home movers to purchase a new home with a 5% deposit.
Having already helped over 10,000 first time buyers and home movers, the schemes are proving extremely popular. As part of our services, we will appoint you with your own dedicated mortgage advisor who will find the most appropriate solution available to you. This same advisor will complete the application forms on your behalf and work with local government agents to ensure that your home buying process as smooth as possible.
Help to Buy Equity Loan Scheme
The Help to Buy Equity Loan scheme is available on new build properties from participating home builders and offers an interest rate as low as 2.34%. A minimum of a 5% deposit is required in order to receive a 20% equity loan from the government, followed by a 75% mortgage from a qualified lender.
Unlike other shared equity schemes, you will retain 100% ownership of your home. In England the equity loan from the government will be interest free for the first 5 years. After year 5, a 1.75% fee is payable which will rise alongside RPI inflation, plus 1% annually.
Help to Buy Mortgage Guarantee Scheme
The Help to Buy Mortgage Guarantee scheme is the second phase of the government scheme was launched in October. This scheme gives both first time buyers and home movers access to 95% mortgages, 15% of which will be guaranteed by the government. Both new builds and existing properties are included in this phase of the scheme.