Buying your own home is probably one of the largest financial commitments you will ever make. The good news is that the Government has stepped up to help buyers with their Help to Buy Schemes. You can read all the details, with clear explanations, on the Government’s website helptobuy.gov.uk. You will need to see an Independent Mortgage Advisor who can give you full details and tell you if you are eligible for the scheme you are interested in.
The schemes include Help to Buy: Shared Ownership, Help to Buy: Equity Loan and the Help to Buy: ISA
The Help To Buy Equity Loan: New build or second hand? If you are trying to decide whether or not to buy a second hand or new build property this may help you decide! To be eligible for the Help To Buy Equity Loan then the property must be newly built and up to the value of £407,400 . The Government lends you up to 20% of the cost of your home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.
And for the first five years of owning your home, the government won’t charge you fees on their 20% loan. The limit of the value of the home you buy is £407,400, you must be a first-time buyer and not own any other property.
The Help to Buy Shared Ownership: can help you if you can’t afford the mortgage on 100% of a home, it offers you the chance to buy a share of your home, between 25% and 75% of the home’s value and then you pay rent on the remaining share. You have the option to buy bigger shares when you can afford to. You can buy a newly built shared ownership home from a housing association.
The Help to Buy ISA: helps First Time Buyers to save for their home. It pays buyers a government bonus up to a maximum of £3,000. For example, save £200 a month and they’ll add £50, up to a maximum of £3,000.
If you would like to know more about the schemes and you don’t already have a mortgage advisor then just ask as we can put you in touch with one of our partner advisors.
Visit the Government’s website: