The Help to Buy scheme is a government initiative that can help you buy a property with as little as 5% deposit, putting home ownership within reach of those who previously may not have been able to afford it. At FirstMortgage we can guide you through the whole process, completely free of charge, and advise you on the most appropriate mortgage scheme that suits your requirements. Find out how it all works...
Help to Buy Equity Loan 2
The Help to Buy Equity Loan scheme was the first phase of the Help to Buy scheme which was introduced in 2013 in England and Scotland. This scheme gives buyers the opportunity to buy a new build home from a participating developer with just 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. In Scotland the equity loan remains interest free for the duration of the loan whilst in England a 1.75% fee is payable after the 5th year and will rise alongside RPI inflation plus 1% annually.
Help to Buy Mortgage Guarantee
3
The Help to Buy mortgage guarantee scheme was launched in October 2013 and is available nationwide, giving eligible buyers access to 95% mortgages for both traditional and new build properties. Through this 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 At FirstMortgage we can arrange the most suitable scheme for you and typically have your mortgage approved in principle within 48 hours. All completely free of charge.
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Help to Buy Scheme Requirements To be eligible for the 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 & 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
Contact your local branch for advice Edinburgh & East Scotland
Glasgow & West Scotland
Falkirk & Central Scotland
Dundee, Fife and Tayside
Aberdeenshire & Grampion
0845 459 7625
0845 459 7624
0845 459 0146
0845 459 0464
0845 459 0454
30 Walker Street EH3 7HR
40 High Street G1 1NL
35 Vicar Street FK1 1LL
27 Crichton Steet DD1 3AR
8 Thistle Street AB10 1XZ
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 financialconduct authority - In England and Wales you may be referred to an advisor from First Mortgage (NE). First Mortgage (NE) is a separate entity and is a trading style of M&R FM Ltd, who are authorised and regulated by the financial conduct authority.