Help to Buy Gets Better With Help To Buy 2
Following on from the success of Help To Buy 1 launched earlier in the year, the new Help To Buy 2 is aimed at a much broader audience.
The Help to Buy 2 basics:
- Purchase for first and subsequent time buyers.
- Available on your choice of property.
- The property must be your only one.
- The maximum purchase price is £600,000.
- The minimum deposit is 5%.
- The Government may contribute a deposit up to 15%.
- The mortgage has to be on a repayment basis.
- The maximum combined household income is £150,000.
- It cannot be used in conjunction with a shared ownership or shared equity purchase.
- Credit issues, such as CCJs and defaults, cannot amount to more than £500 in the last 3 years.
- There are lenders that will allow you to remortgage.
The ‘Help to Buy Mortgage Guarantee’ is provided by the Government to the lender after they have carried out an affordability and creditworthiness assessment on the applicants.
The hope is with a larger deposit the interest rates will be more affordable and thus kick start a property boom. Help to Buy 1 has already seen a take-up of 15000 buyers since its April inception but the expectation of this new scheme Help to Buy 2 is expected to be far greater.
Unlike the April launch the lenders appear to be better prepared for the announcement and have been scrambling to sign off fearing a market swing to those who can provide a solution we capture overnight market share. This is a promising sign as it will mean rates are probably going to be lower for 95% mortgages than they have been since the heady days of 2007.
(Please make sure you also have an up-to-date Equifax Credit Report ready to email to us. To get your Free Report please click on the link image)
For more information on our range of Help to Buy scheme products please complete the enquiry form on the right-hand side of this page or alternatively call us on (020) 7993 2044.
Payam Azadi is a partner at Niche Advice Ltd who are Independent Financial and Mortgage Advisers in London.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Finance Brokers In London. His role is very much focused on Property financing both on residential and commercial lines.
You can call Payam on 020 7993 2044 or alternatively complete the enquiry form so he can personally get in touch with you.
Niche Advice is not tied to any bank, building society, estate agent or insurer and offers Independent Mortgage and Insurance advice.