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You are here: Home / Mortgages / Help to Buy / Help to Buy Mortgage

by Payam Azadi

Help to Buy Mortgage

Help to Buy Mortgage Equity Loans

Help to Buy Mortgage is a method of buying a property with the help of the Government. The concept is to make home ownership more affordable and also further UK building.

The Help to Buy Mortgage equity loan is just that ‘additional borrowing’ to finance the deposit. Backed by the Government repayments are not normally required until 5 years has past so until then the overall repayments of home ownership should be lower than if you took out a larger mortgage with a bank or building society.

The standard Help to Buy Mortgage scheme advances up to 20% as an equity loan but there are variants such as Help to Buy London which offers 40%.

Not all Mortgage Lenders accept Help to Buy and they will all insist on a minimum of 5% deposit from your own resources.

The scheme is restricted to new build developments and for sole property ownership.

Help to Buy Mortgage example:

Property value £100,000
Purchasing 80% share i.e £80,000
Deposit £5,000 (minimum 5%)
Mortgage £75,000 (75%)
Help to Buy Equity Loan £20,000 (20%)

Help to Buy Mortgage Loan basics:

  • Purchase for first-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 from your own resources is 5%.
  • The Government may contribute a deposit up to 40% (depending on the scheme).
  • 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 can be considered.

There are lenders that will allow you to remortgage.

Please be warned it is likely the developers will try and persuade you to use their own Mortgage Advisor. We would always recommend you consider independent advice.

For more information on our range of Help to Buy Mortgage scheme products please complete our Online enquiry form or call us on T: 020 7993 2044.

mortgage broker fees Simple guide to the Help to Buy Scheme
Payam Azadi

Author: Payam Azadi

Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines. To get in contact with him please click here.
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Filed Under: Help to Buy Tagged With: Help To Buy 2, Help to Buy Lenders, Help to Buy Mortgage Guarantee, help to buy mortgage london, Help to Buy second stage

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AS A MORTGAGE IS SECURED AGAINST YOUR HOME OR PROPERTY, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.

If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.

Niche Advice Limited is a Credit Broker and does not lend money directly to clients. Niche Advice Limited is authorised and regulated by the Financial Conduct Authority. FCA Number: 750263.

Commercial Buy-to-Let and commercial mortgages are not regulated by the Financial Conduct Authority.

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A summary of our internal complaints handling procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 0234567.

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