Buying your first home is likely to be the biggest financial outlay you’ll ever experience, and for many people on lower incomes, it can be something of a distant dream. At Expedite Finance, we understand the many hurdles that aspiring homeowners can face and we’re committed to doing absolutely everything we can to take the strain out of finding suitable mortgages. The whole process can often be complex and time consuming but rest assured that we’ll help you find your way.
The UK Government has introduced a series of schemes known as Help to Buy, aimed at helping first time buyers and those on low incomes to get a foot on the property ladder. Below you’ll find a few more details about the schemes, who they apply to, and how they might help you.
Help to Buy Equity Loan
The Help to Buy Equity Loan is available to first time buyers and homeowners for new build homes only. Specifically, it is designed to help where the potential buyer has only a small deposit of a minimum of 5%. In this instant, and should you qualify, the government will advance a loan to the tune of 20% of the property price, meaning a mortgage of 75% is required. The loan cannot be used on properties valued at more than £600,000, it must be a repayment mortgage, and you must be credit worthy and able to secure a mortgage.
The advantage of the Help to Buy Equity Loan is clear: the buyer will have a lesser outlay on their mortgage. However, remember it is a loan, and will need to be paid back. The terms are quite favourable, with no charges paid over the first five years of the mortgage, and then at a low rate thereafter which rises on a sliding scale. Expedite Finance have plenty of experience in helping buyers using the Help to Buy Equity Loan scheme, and we can find you the very best deal for your individual circumstances.
Help to Buy Mortgage Guarantee
The Help to Buy Mortgage Guarantee differs from the Equity Loan in that, instead of advancing a loan on the value of the property, the government will guarantee to the lender as much as 15% of the value of the property, assuming the buyer has at least a 5% deposit and a 95% mortgage is granted. Again, it must be a repayment mortgage, the value can be no higher than £600,000, and it is aimed at those on lower incomes who are looking to buy a property – unlike the Equity Loan it can be used for existing homes and not just new build properties – whether for the first time or otherwise.
As the guarantee is to the lender, and not the borrower, the borrower pays no specific fee for the deal, so the returns are quite favourable indeed. It is important to understand that, if you are buying in Scotland or Wales, slightly different criteria apply, and at Expedite Finance, we can help you find out if you are eligible or not.
With many years experience in the mortgage field Expedite Finance is perfectly placed to help you find the most suited deal to go hand in hand with your Help to Buy loan or guarantee. We work hard to find the very best deal for your individual circumstances, plus we may have access to lenders and rates that aren’t available directly to you. Call our team today on 0800 2012 148 to see how we can help you.
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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE