Help to Buy
View our user-friendly fact sheets to help you make your own decisions about your mortgage today
The Government’s Help to Buy scheme aims to provide help with mortgages to prospective borrowers for new build homes, and the area of first time buyer mortgages, providing they are valued at under £600,000.Can I get a Mortgage?
Raising a sufficiently large deposit can be one of the hardest personal money challenges. Research in 2013 by Moneysupermarket.com indicates that the average age of a first time buyer in the UK has risen to 35. Many require the assistance of parents or other relatives in order to be able to purchase even at this age, making this a key family finance issue. In an effort to make it easier for young people to get on the ladder, the Government introduced its Help to Buy scheme in April 2013. The first stage applied to new-build properties only.
This first part of the scheme allows a prospective buyer with a deposit of only 5% of the property value to obtain a mortgage. Instead of the 95% mortgage such a customer would have to try and find previously, they can now apply for a mortgage for 75% of the value, for which they are much more likely to be accepted, while the remaining 20% is provided in the shape of a loan from the Government.
No fees will be charged on this loan for the first five years. The loan will need to be repaid alongside the mortgage at the end of the term.Can I get a Mortgage?
With all the media interest about the Help to Buy scheme we can assist with guidance on what products are available and gaining a mortgage agreement.
Help to Buy 2 allows you to get a mortgage with just a 5% deposit
With this type of scheme the government has promised to underwrite 15% of the mortgage (in a promise to the lender) in the event that you default. As a result, mortgage lenders feel confident enough to offer you a 95% mortgage
The scheme applies to all types of properties (new build and old) there is a limit of £600,000 as a purchase price.
First time buyers AND existing homeowners can apply
You must have a good credit rating
You cannot apply for a Help to Buy mortgage if you have overdue mortgage payments of up to 3 months or any other loan within the past 2 years. Also if you have one or more county court judgments, with a total value greater than £500
How do I apply for a Help to Buy mortgage?
Once you have found a property you want to buy, to access the Help to Buy mortgage guarantee you need to find a mortgage from one of the participating lenders.