Help To Buy

Getting on the property ladder is an exciting experience for young people and first timers. There is so much information and advice out there and coming in with a base level of knowledge can be intimidating. So where should you start?

Our expert team have knowledge and experience with Help to Buy mortgages and can provide a starting point for your journey into homeowner life.

What is a Help to Buy mortgage?

A Help to Buy mortgage is a great option for first time buyers, with a small deposit amount of 5% required and a loan of up to 20% provided by the government. These statistics make the amount left to borrow from a mortgage provider significantly less.

What is a Help to Buy equity loan?

Having a bigger deposit gives you an advantage when looking for a good mortgage rate. A Help to Buy equity loan can be used by individuals who are struggling to save for a deposit by providing them with up to 20% of the property’s worth. This only applies to new-build properties worth up to a maximum of £600,000.

The loan will begin to incur interest after 5 years.

What if I don’t want a new-build property?

Shared ownership is also an option in the Help to Buy scheme that allows you to buy a share of a property and pay rent on the remaining share. This could be between 25% and 75%, which could change over time depending on what you can afford.

Whether you are a first time buyer or previous homeowner looking for a more affordable option, shared ownership can make paying off a mortgage more comfortable and suited to your income.

Questions & Answers

What are my options if I am not a first time buyer?

If you aren’t able to raise a bigger deposit and are an existing homeowner you could be eligible for a Help to Buy mortgage. This involves an equity loan scheme and requires a deposit as low as 5%. However this is changing from April 2021 and will only be available to first time buyers.

How does Help to Buy compare to a standard mortgage?

The deposit amount required is the main difference between a standard and Help to Buy mortgage. With a much lower deposit, it will be possible to purchase a property much quicker than applying for a standard mortgage.

Can I provide a bigger deposit as a first time buyer?

The more deposit you can provide the less you will need to borrow from a lender. This can also entitle you to more appealing mortgage rates.