What is the Help to Buy scheme?

The Government’s Help to Buy schemes are aimed at encouraging more first time buyers to step onto the property ladder and for existing home owners to move up the ladder. This is particularly good news for buyers with small deposits (5% or over).

There are two Help to Buy schemes:

Help to Buy – Part I

Called ‘The Equity Loan Scheme’, it began in April 2013 and allows purchasers of New Build properties to borrow up to 20% of the property’s value from the Government. These loans are interest-free for the first five years. The purchaser needs to contribute a deposit and the mortgage and deposit must cover 80% of the total purchase price.

Help to Buy – Part II

The Government announced this week that the second phase of the Help to Buy scheme will be moved forward by 3 months and begin in October 2013. Called ‘The Mortgage Guarantee Scheme’, it allows buyers to purchase new or second hand homes up to the value of £600,000 with a mortgage deposit of just 5%.

The remainder of the mortgage loan will then be provided by an approved lender – with 15% of this loan guaranteed by the Government for a period of 7 years. This is in return for a fee paid for by the lender.

Who’s eligible for support from Help to Buy?

– Existing home owners and first time buyers
– Buyers with a minimum deposit of 5% of the purchase price
– Available on properties up to £600,000
– Must not be a second home
– Available to British citizens
– Properties in England and Scotland
– Buyers who are borrowing from a participating lender

How could it help you?

Are you a First Time Buyer who knows you can afford mortgage payments (in many cases they are lower than rental payments) but just can’t afford a steep deposit? Now is a great time to buy your first home. We are assisting lots of First Time Buyers to see if Help to Buy can work for them.

Already own a home but you’re stuck in the negative equity trap because the value of your home has not increased? This is a great opportunity for you too.