After seven years of recession, spiralling house prices and the challenge of saving a substantial deposit, becoming a home-owner is more difficult than ever. To combat this the Government has launched the ‘Help to Buy’ scheme which offers those struggling to rise a big deposit the opportunity to buy a house.
If you’re thinking about purchasing your first property or moving to a new home, but you can’t put together enough money to get a mortgage from the bank, take a look at our guide to the ‘Help to Buy’ scheme:
What are the requirements to be eligible for the scheme?
– Have a deposit of at least 5%
– Be looking at property for sale worth £600,000 or less
– Be purchasing a property you intend to live in most of the time (you can’t buy a property you intend to let out or use as a second home)
There are two options on the scheme depending on your economic situation:
Option 1. Help to buy: equity loan
This option will be of interest to those looking to buy a new build home but want to make their mortgage repayments more affordable.
The main features of the equity loan are:
– New build only
– Now available to all, not just first-time buyers
– The Government will lend you up to 20% of the value of your property through an equity loan, which can be repaid at any time or on the sale of your home
– You will only need to secure up to a 75% mortgage from a bank or building society
Option 2 – Help to Buy: mortgage guarantee
This option will suit those who have a small deposit and can afford repayments on a 80-95% mortgage. It is available to those who want a new build or older home, or people who want to re-mortgage with a new lender to get a better deal.
These are the principal characteristics of the mortgage guarantee option:
– New build and existing properties for sale
– Available to existing home-owners as well as first-time buyers
– You’ll need to secure a mortgage for your purchase. The Government guarantee will
encourage lenders to offer better access to low-deposit mortgages
If you have any questions about the ‘Help To Buy’ scheme or you need help in your search for your first home, you can contact Mistoria Estate Agency today on 0161 707 6106 or via our website.