Help to Buy scheme
The Help to Buy Scheme began in 2014 and allows borrowers to purchase a property in cases where they are only able to contribute a deposit equivalent to 5% of the purchase price. The scheme is available on residential properties up the value of £600,000.
There are two options available under the scheme. The first is an equity loan scheme which is only available for new-build properties, in essence the Government lend you up to 20% of the purchase price of the property with the remainder made up of your 5% deposit and a 75% mortgage. The second option is a mortgage guarantee scheme whereby the Government act as guarantor for the mortgage. You are still only required to contribute 5% deposit and you will take out a 95% mortgage.
The Help to Buy Scheme has been extremely popular as it not only helps first time buyers enter the property market but current property owners can take advantage too allowing them to take their next step to another property.
Like a mortgage, the Help to Buy Scheme registers a charge against the property to show their interest. Unlike a mortgage, the amount you have to repay to the lender is based on the value of the property from time to time.
Whichever option you would like to pursue under this scheme we are able to guide you through the process step-by-step, ensuring the necessary Help to Buy documentation is completed and ensuring you will obtain clear and marketable title to the property upon completion.
To find out more or discuss your individual requirements in further detail, our Conveyancing experts will be delighted to help. Contact us today on 01603 693500 or email us using the 'Make an enquiry' form.