Andrew Fagg from Davenport Financial Management confirms the early introduction of the second part of the Government’s ‘Help to Buy scheme’.

Andrew Fagg Davenport Financial ManagementThe scheme is designed to help the many credit-worthy people who are finding it difficult to get a mortgage today because of the large deposits needed following the financial crisis.

To help address this, the Government has created the Help to Buy: mortgage guarantee scheme to increase the number of low-deposit mortgages available for credit-worthy households. Under the scheme, the Government offers mortgage lenders the option to purchase a guarantee on mortgages for a new or existing property, where a borrower has a deposit of between 5% and 20%. Because of this support, NatWest are able to offer more mortgages to borrowers with smaller deposits.

If you can afford to repay a mortgage but don’t have a large deposit, this scheme will benefit you by giving you access to low deposit mortgages. This means you won’t have to wait and save up for a large deposit to buy or move home. The scheme does not guarantee your payments. You are responsible for paying your mortgage under this scheme in exactly the same way as any other mortgage.

Any borrower seeking to benefit from the Help to Buy mortgage guarantee scheme will need to meet the lender’s affordability and other criteria in the normal way, but there are some further eligibility requirements which you will need to meet in order to get a Help to Buy supported mortgage. In particular; it must be a residential mortgage, so you will be planning to live in your house and not rent it out; the property you want to buy must be in the UK and the purchase value must be £600,000 or less; the mortgage must be taken out on a repayment basis, rather than interest-only; the mortgage must be to buy your only property, so you cannot use it to buy a second or further home; and the mortgage cannot be for a shared equity or shared ownership purchase.

Halifax have just introduced a new 95% scheme for customers wishing to buy second hand properties via the Government Help to Buy scheme.

Contact me for advice about 95% borrowing, this is an exciting new product, the likes of which hasn’t been available for some time!

Andrew Fagg

Davenport Financial Management Ltd

Mobile 07720 353866     Email