The Government’s Help to Buy scheme was designed to help people get on the property ladder. First-time buyers have benefitted greatly as government legislation has made it easier than ever to secure a mortgage. As a result, the housing market has expanded, helping the wider economy evolve in doing so.
Correct. A more manageable deposit of just 5% has allowed many of us to save and buy much quicker than in years gone by. The 5% deposit is % of the overall value of the property you intend to purchase. So, if it’s worth £100,000 you’ll need a £5,000 deposit, for example.
If you have at least a 5% deposit (5% of property value) and the overall value of the property is £600,000 or less, you’re over half way to qualification. The property you purchase must be one in which you intend to live in and not one that you intend to let out, to ensure you meet expected criteria.
That’s right! For the first 5 years, at least. Arguably, the toughest years of becoming a home owner are within the first five years whilst you’re adapting to paying your mortgage and bills, so it’s a great bit of breathing space and a big advantage. To clarify, it’s your Help to Buy loan which dodges the interest and not your mortgage.
Because you are borrowing less overall, the likelihood you will qualify for a mortgage increases (but that’s the only increase you’ll see). A lesser loan to value qualifies you to receive more competitive rates of interest, compared to a standard mortgage.
New builds are the ideal Help to Buy purchase. Immaculate finishes on a blank canvas allow the creatives to begin to imagine the possibilities. Whereas the less adventurous amongst us prefer to complete the purchase with fixtures and fittings chosen from stock. Either way, new builds come with guarantees and peace of mind. There’s nothing worse than realising the property you’ve just bought needs a new central heating system within the first week of moving in!
It’s true, not all providers offer Help to Buy mortgages. Luckily, the ones who do tailor and cater for first-time buyers by altering their standard mortgage packages. This process makes it more personalised and makes sur that all parties know where they stand.
As you may now be aware, the Help to Buy scheme comes with layers of goodness and acts as a real turning point in many people’s lives by giving them the ability to buy a home and get on the property ladder! MortgageKey always advise its customers to consider all options and explore all avenues before committing to such a life-changing event. For more detailed information surrounding the Help to Buy scheme, it’s best to visit: https://www.helptobuy.gov.uk/ If you’re looking for a new home and the Help to Buy scheme is appealing to you, speak to one of our advisors today and we’ll be happy to help.
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Representative Example: Annual Interest rate of 2.44% fixed for 2 Years followed by 3.59% for the remaining term. Representative 3.50% APRC Variable. Based on borrowing of 150,000 over 17 years repayments of £899 per month. Total amount repayable £198,466. Includes Lender Fee of £995 and Broker Fee of £695.