Now that the media spotlight has faded it’s easy for First Time Buyers to forget that the governments Help to Buy scheme is still very much available to them and is a great way of making it affordable to get the house you want.
This scheme works in two main ways:
Equity Loan (New Build Properties):
With an equity loan the Government lends you up to 20% of the cost of your new-build home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest. You won’t be charged loan fees on the 20% loan for the first five years of owning your home.
A mortgage supported by the Help to Buy: mortgage guarantee scheme works in exactly the same way as any other mortgage except that under the scheme the Government offers lenders the option to purchase a guarantee on mortgage loans.
Because of this support, lenders taking part are able to offer home buyers more high-loan-to-value mortgages (80-95%).
You will still be fully responsible for your mortgage repayments. So if you have a 5% deposit, you will need to take out and pay back a 95% mortgage.
If these options don’t apply to you it’s also worth condisering other government backed schemes such as include Shared Ownership , Right to Buy and NewBuy.
For more information visit http://www.helptobuy.org.uk/home or speak to a member of staff on 0114 2413430.