Help to buy is a government initiative to enable people to get (or stay) on the property ladder. In recent history, we saw property prices dramatically increase, and despite the subsequent crash, prices are still at such a level that many people feel they’ve been priced out of the market.
With living costs also increasing, saving for a deposit can be difficult – help to buy reduces the need for a hefty lump sum and offers other financial benefits too.
A good option for first time mortgages
For those looking to acquire their first mortgage, help to buy means that you can purchase a new build property and you’ll only need to find 5% of its value to put down as a deposit. In addition to a lower deposit, you’ll also get an equity loan; the government will lend you 20% of the property price, leaving you with a 75% mortgage – and you won’t have to pay any fees on the loan amount for the first 5 years.
Am I eligible for the buy to let scheme?
If you’re buying a new build property priced £600,000 or under and you have 5% of the property’s value to put down as a deposit, then yes, you might be!
However, if you already own another home or want to part exchange, you won’t meet the criteria and will need to look at other types of mortgage.
As well as the equity loan type of help to buy scheme, you may also wish to explore the mortgage guarantee option, which also applies to older properties if a new build isn’t for you.
If you’d like to learn more about the help to buy scheme, first time mortgages or require any other related information or advice, you can contact me by calling 01226 693001 or send me a brief message here and I’ll get back to you as soon as I can.