Help to Buy

Help to Buy The Government’s Help to Buy: Equity Loan and Help to Buy: Mortgage Guarantee were launched in 2013 to support and assist hard working taxpayers who could pay a mortgage, but who could not afford the high deposits demanded by lenders in the wake of the financial crisis. Both schemes require a 5% deposit and are available to first time buyers and existing homeowners. With Help to Buy all prospective J P Wild Homes buyers can benefit so for further information and assistance with purchasing your potential new home, please do not hesitate to contact us on 0113 242 8411.

Help to Buy: Equity Loan

How does it work?

With an Equity Loan the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest. You won’t be charged loan fees on the 20% loan for the first five years of owning your home.

Who is eligible?

  • Equity loans are available to first time buyers as well as existing homeowners looking to move.
  • The home you want to buy must be newly built with a price tag of up to £600,000.
  • You won’t be able to sublet this home or enter a part exchange deal on your old home.
  • You must not own any other property at the time you buy your new home with a Help to Buy: Equity Loan.
  • This scheme is available in England only. The Scottish Government, Welsh Government and Northern Ireland Housing Executive run similar schemes.

Help to Buy: Mortgage Guarantee

How does it work?

A mortgage supported by the Help to Buy: Mortgage Guarantee scheme works in exactly the same way as any other mortgage except that under the scheme the Government offers lenders the option to purchase a guarantee on mortgage loans. Because of this support, lenders taking part are able to offer home buyers more high-loan-to-value mortgages (80-95%). You will still be fully responsible for your mortgage repayments and so, if you have a 5% deposit, you will need to take out and pay back a 95% mortgage.

Who is eligible?

  • A mortgage under the Help to Buy: Mortgage Guarantee scheme works like any other mortgage. Your lender will check that you can afford the mortgage and that you do not have a history of payment difficulties.
  • To qualify for a mortgage supported by Help to Buy: Mortgage Guarantee: the property you are purchasing could be an existing or new-build home in the UK, priced up to £600,000.
  • You must not own any other property anywhere in the world at the time you buy your home supported by the Help to Buy: Mortgage Guarantee scheme.
  • Your mortgage must be a repayment one, not interest only. Offset and guarantor mortgages are also excluded from the scheme.
  • You cannot let out the property to somebody else.
  • Your mortgage can be taken out by an individual or individuals but not by a Company.
  • Other than using a Help to Buy: ISA to boost your deposit, you cannot use the Help to Buy: Mortgage Guarantee scheme with any other Government home-buying scheme such as Help to Buy: Equity Loan, Shared Ownership or Right to Buy. Your deposit for the property cannot come from a government scheme either.
  • you don’t have to pay any additional fee to the Government to get a Help to Buy supported mortgage.
  • the size of the mortgage you apply for must be less than 4.5 times your income.
 
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