Help to Buy
The Help to Buy scheme was announced by the government in March 2013, and provides support for first time buyers trying to get on the housing ladder, as well as existing homeowners looking to upsize to a new property.
Help to Buy mortgage guarantee – Can I have one?
The scheme is open to first time buyers and existing homeowners. In order to be eligible for a Help to Buy mortgage you must:
• Have a deposit of at least 5%;
• Be looking to buy a home worth £600,000 or less;
• Be purchasing a property you intend to live in most of the time;
• Not let out the property or use it as a second home;
• Be looking for a capital repayment mortgage, interest-only mortgages are not included in the scheme.
Help to Buy mortgage guarantees
Buyers with a deposit of between 5% and 20% for a property can take out a mortgage from a participating lender worth between 95% and 80% of the property’s value.
To make these loans less risky, the government will then guarantee to pay the lender (not you!) up to 15% of the value of the mortgage if you default on the loan. So, you’re still responsible for paying your mortgage under this scheme in exactly the same way as any other mortgage. So while lenders have been reluctant to lend to people with small deposits in recent years, the mortgage guarantee should ensure that there are more deals available to people with a deposit of just 5%.
A number of lenders are now offering Help to Buy mortgages including: Aldermore Bank, Santander, Virgin Money, National Westminster and Halifax. There are also many non-Help to Buy 95%, 90% and 85% mortgages on the market. A Green & Co adviser will be able to arrange the right one for you.
Your home may be repossessed if you do not keep up repayments on your mortgage.
We will charge a fee of £199 for arranging your mortgage if it is a residential purchase and £495 if it is a buy to let or let to buy.
To take your first step onto the housing ladder or upsize from your current home make an appointment to see a Green & Co Mortgage and Protection adviser by calling 0121 323 4999, e-mail us at firstname.lastname@example.org or follow the link below.