The Help to Buy scheme has been running since April 2013 and has helped thousands of people buy a home. Initially available only as an Equity Loan on newly built property, the scheme has been extended to offer a Mortgage Guarantee on new and existing homes in addition to a wide variety of options.
We have managed the sale of many homes where the buyer has used the Help to Buy scheme, so are well versed in handling any Help to Buy related house sales.


More information about Help to Buy

The help to buy scheme is there to help people who can afford to make monthly mortgage payments but cannot save up the substantial deposit required for a house purchase with a mortgage, by enabling people to buy a property with a deposit of just 5%. Find full information about the scheme here http://www.helptobuy.org.uk/

There are two types of Help to Buy;

Mortgage Guarantee

Equity Loan  

 

 

Mortgage Guarantee

How does Mortgage Guarantee Help to Buy work?

The government provides the option to lenders to purchase a guarantee on mortgage loans, meaning lenders taking part are able to offer home buyers higher loan-to-value mortgages of 80% to 95%. The buyer is responsible for paying off the mortgage as usual, i.e. if a 5% deposit is paid the 95% mortgage will need to be paid back to the lender.

  • Available on existing and new build property
  • First time buyers or other home movers
  • Property value up to £600,000
  • Not for second home or buy-to-let
  • The mortgage must be a repayment mortgage (not interest only or guarantor)
  • Deposit must be self funded (not from another government scheme)
  • Mortgage guarantee cannot be used in conjunction with other government schemes such as shared ownership or equity loan
  • The mortgage cannot be taken out by a company
  • The Mortgage Guarantee scheme will run to the end of 2016

how-it-works-mortgage-guarantee

Equity Loan

How does Equity Loan Help to Buy work?

The Government lends the buyer up to 20% of the property value as an interest free loan for 5 years, after 5 years interest is chargeable. The buyer will need a 5% deposit and to get a 75% mortgage for the remainder of the value.

  • Available on registered new-build homes only
  • First time buyers or other home movers
  • Property value up to £600,000
  • Not for second home or buy-to-let

help-to-buy-equity-loan

 

      Click Here to Download the Help to Buy equity loan buyers’ guide from the Homes & Communities Agency


FAQs