Help to buy mortgages
Our Help To Buy Mortgage Service
Special features of what we offer include:
- Get the best help to buy mortgage deals in the UK
- Whole of market service - we work with most UK lenders
- Access to leading market mortgage rates
- Access to exclusive loan deals not available on high street
- Fast turnaround - speak to us today if you need to move quickly
To investigate your HELP 2 BUY mortgage options call our mortgage team on 0117 403 4474 or fill in our call back form.
Saving up a big enough deposit to buy a house can present a real challenge for many people. Unless you are fortunate enough to have substantial savings or have inherited money from a relative, the prospect of home ownership can seem like a distant dream.
A Help to Buy mortgage could offer you the chance to own your own home with a deposit of as little as 5%, provided that you meet certain criteria.
Help to Buy mortgages are part of the second phase of the Government’s Help to Buy scheme (the first phase applied to new build properties only). The purpose of the scheme is to make it easier for people with small deposits to buy their first property, or for existing homeowners to move house without needing a huge amount of equity in their current property.
How does a Help to Buy mortgage work?
Under this system, borrowers across the whole of the UK can put down a deposit of as little as 5% of the property price. The lender offers a mortgage covering the other 95%. Lenders pay a fee to the Government to be part of the scheme, in return for which they receive a seven-year Government-backed guarantee to cover 15% of the loan value.
At the time of writing, there are nine high street mortgage providers currently offering Help to Buy mortgages, and the scheme is planned to run in its current form until 31st December 2016.
Help to Buy Mortgages – what you need to know
The Help to Buy mortgage scheme is available for both new and existing properties across the UK, up to a value of £600,000.
It’s important to understand that while the Help to Buy scheme could be a really useful means of getting onto the housing ladder with a lower deposit than is usually required, is not a payment guarantee scheme, and you need to budget for the repayments and associated costs of moving. The scheme protects your lender in the event that you default, and you will still be liable for missed payments (and could risk losing your home if you do not keep up with repayments) just as with any other mortgage.
The scheme is available to both first time buyers and those who want to move up the housing ladder.
The property you buy must be your primary residence and not a second home or a holiday home.
The scheme is not available for buy to let mortgages – if you plan on purchasing a property to rent out, you will need to choose a different kind of mortgage.
Offset and guarantor mortgages are currently excluded from the Help to Buy mortgage scheme
Help to Buy mortgages are repayment mortgages – interest only options are not available.
In addition to meeting the specific Help to Buy criteria, you and any joint applicants will need to pass the usual eligibility checks for a mortgage as set out by your mortgage lender. This may include a credit check and affordability checks to ensure you can repay the mortgage.
You cannot apply for a Help to Buy mortgage deal in conjunction with any of the Government’s other home ownership schemes, such as NewBuy or Shared Equity schemes.
In order to be eligible for the Help to Buy mortgage scheme, you must be a UK citizen or have the right to remain indefinitely in the UK. The scheme only applies to properties in the UK.
The specific criteria for the Help to Buy mortgage scheme is applicable to all named mortgage holders.
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