Government backed Help to Buy Mortgage Scheme
Help to Buy is a government mortgage scheme which could make getting on to, or moving up, the UK housing ladder that little bit easier. It helps existing home owners and first time buyers purchase a home with as little as 5% deposit.
The scheme is available to existing home owners and first time buyers and can be used to help purchase a property up to £600,000 in one of two ways:
- Mortgage Guarantee - available on both pre-owned and new build properties with a standard mortgage of up to 95% of the purchase price.
- An Equity Loan - This is available on new build properties only using a government equity loan of 20% of the purchase price plus a traditional mortgage.
As of October 2013, the government backed mortgage guarantee scheme called "Help to Buy" will allow people to purchase a property up to £600,000 with a deposit of just 5%
The process for applying for the mortgage is the same as applying for a traditional mortgage and to date is being offered by 3 major lenders:
RBS (Natwest), Lloyds Banking Group (Halifax and Bank of Scotland) and HSBC
What is the criteria and who is eligible for Help to Buy Mortgages
Below is a quick checklist of who is eligible for the scheme:
- Available for properties in the UK
- Available to both existing home owners and first-time buyers
- Borrowing from a participating mortgage lender
- Must be your only property
- Available on all previously owned and new build properties up to the value of £600,000
- Buyers need a minimum of a 5% deposit
Solicitors and Conveyancing Quotes for people using the Help To Buy Mortgage Scheme
As with any property purchase it is advisable to use the services of a professional and regulated property solicitor or licensed conveyancer. Get an instant quote and instruct a solicitor or conveyancer for your Help to Buy purchase