The Help to Buy Scheme is a government initiative to help more people get onto the property ladder. It is only available to first-time buyers and those purchasing new-builds. You need a deposit of at least 5% of the purchase price, and provided that you meet the eligibility criteria, the Government will either lend you up to 20% of the purchase price or provide a guarantee to your mortgage company.
Help to Buy: Equity Loans
The Government can offer you a loan towards the cost of buying a house. You need a 5% deposit but then you can borrow money from the Government for up to 20% of the price. You will need to take out a mortgage for the rest of the value of the property. So if you had a 5% deposit and took out the full 20% equity loan, you would need a mortgage for 75% of the purchase price.
Help to Buy: Mortgage Guarantees
The Government can offer mortgage lenders the option to buy a guarantee for part of the mortgage. This means that lenders may be more willing to offer high loan-to-value (LTV) mortgage deals to house buyers. You will still need a 5% deposit.
Help to Buy: ISA
We are also able to act for first-time buyers where some of your funds are saved in a Help to Buy ISA. We will apply for your government bonus on your behalf and add this to your purchase money.
Our Property team will be happy to find out if you are eligible for any part of the scheme and to talk you through your options.