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Since launching in April 2013, Help to Buy has helped over 10,000 first time buyers and existing homeowners move into a new home with as little as a 5% deposit.

As part of the Help to Buy initiative, there are two different schemes to help those buying a new home:

  • Help to Buy Equity Loan scheme
  • Help to Buy Mortgage Guarantee scheme

Whilst both schemes allow you to purchase a home with a 5% deposit, the Equity Loan scheme is exclusively available on new build homes, whilst the Mortgage Guarantee scheme is available for both new build and traditional homes. The schemes also differ in how lending is offered and there are further differences depending on whether you are buying in England or Scotland.

As the UK’s leading first time buyer specialists, we offer impartial advice on both these schemes and others that may be available, and we do this completely free of charge to you. A dedicated advisor will discuss the schemes in detail, explaining the eligibility and criteria for each scheme and advice on whether the Help to Buy initiative is a suitable option for you. In addition to ensuring you choose the right scheme, your advisor will then complete the application forms on your behalf and work with local government agents to ensure that your home buying process goes as smoothly possible.

Once your application has been approved, your advisor will recommend the most suitable mortgage product from the whole of the UK mortgage market and will work with your lender and solicitor until your property purchase.

To apply for the Help to Buy scheme or if you would like to find out more, please make an enquiry and an advisors will contact you at an appropriate time. Alternatively, please call 0845 603 1526 to speak to an advisor.

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Equity Loan

The scheme was first introduced in England in April 2013 and in Scotland in September 2013, and requires only a 5% deposit which will then be accompanied by an equity loan from the government, for up to 20% of the property value. As a result, a buyer participating in the scheme would only require a 75% mortgage, putting home ownership in reach for those who cannot afford large deposits traditionally needed and the high monthly repayments which would normally be found on a 95% mortgage.

The Help to Buy scheme differs from traditional Shared Ownership schemes as the buyer always remains the only owner of their property.
 


 

 
 
Mortgage Guarantee

The second phase of the Help to Buy scheme was launched in October 2013 and is available nationwide, giving eligible buyers access to 95% mortgages for both traditional and new build properties. Under the mortgage guarantee scheme, the UK government provide a guarantee to mortgage lenders that protect them up to 15% of the mortgage amount in the event of a repossession. This guarantee allows mortgage lenders to provide 95% mortgages at affordable interest rates as the risk to the lender is reduced.

This phase of the scheme is also available to both first time buyers and homemovers who have a minimum 5% deposit and can afford the mortgage repayments on a 95% mortgage.

 
 
Help to Buy Mortgage Scheme explained
 

Help to Buy Scheme Requirements

To be eligible for the Help to Buy scheme you must meet the following requirements:

  • Have access to funds in order to pay the minimum 5% deposit
  • Have a good credit history
  • Be taking out a mortgage with a qualified mortgage lender, for example a building society or a bank
  • Equity Loan: The property you are looking to purchase must be a new build costing less than £600,000 (£400,000 for properties in Scotland)
  • Mortgage Guarantee: The maximum property value is £600,000
  • Mortgage Guarantee: Only available on repayment mortgages
  • Does not include interest only or self certified mortgages
  • In the case of those looking to move up the property ladder and purchase a larger home you must remove your name from the deeds of any other property you may own before you complete your new home purchase

 
To apply for the Help to Buy scheme or if you would like to find out more, please make an enquiry and an advisor will contact you at an appropriate time. Alternatively, please call 0845 603 1526 to speak to an advisor.


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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
FIRST MORTGAGE IS A TRADING NAME OF FIRST MORTGAGE DIRECT LIMITED WHICH IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY