Need Help To Buy? This Is How You Can Get It
If you’re trying to get on the housing ladder, you have probably heard of the government’s Help to Buy scheme. But what does Help to Buy involve, and more importantly how do you join the scheme? Read on for some top tips from the conveyancing experts at Hopkins Solicitors.
What is Help to Buy?
The Help to Buy scheme was set up by the government in 2013 to help hard working people who don’t have large amounts of savings own their own home.
Many people were struggling to get on or move up the housing ladder, so the government introduced this scheme which makes it possible to buy a home up to the value of £600,000 with as little as 5% deposit.
How Does it Work?
There are two options in the Help to Buy Scheme – an Equity Loan or a Mortgage Guarantee. You can use the Mortgage Guarantee if you are purchasing an existing house or a new-build up to the value of £600,000 and you are taking a repayment mortgage rather than an interest only mortgage. This Help to Buy Mortgage offers lenders a guarantee on the mortgage, which means they can offer buyers high-loan-to-value mortgages of 80-95%. You are still responsible for all your mortgage repayments, but the lender is covered by a government guarantee, allowing you to buy with a smaller deposit.
The Equity Loan is only available on new-build homes with a price tag of £600,000 or less. This part of the scheme is open in England only, but there are similar schemes for Scotland, Wales and Northern Ireland. With a Help to Buy Equity Loan, the government lends buyers 20% of the cash needed to buy a home, so buyers then only need a 5% cash deposit and 75% mortgage to repay. There will be no loan fees on the government loan for five years.
Many people are under the impression that Help to Buy is only for first time buyers, but loans are also available for homeowners looking to move. Contact us if you need help finding out if you are eligible for any Help to Buy scheme.
Guiding You Through
Buying a home for the first time or selling a home and moving can be complicated and stressful. If you are thinking about buying through Help to Buy, let us guide you through the process. Here at Hopkins we can provide impartial advice on Help to Buy mortgages and purchases, and offer friendly support for first time buyers we are also on the ‘Help to Buy’ schemes approved panel of solicitors for conveyancing. Contact us today for more information.Request a Callback
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