Getting your dream home and finally getting onto the first rung of the property ladder has been made easier thanks to the Help To Buy scheme. The scheme was created because of one obvious problem: buying a new home is a very expensive investment.
All firms are regulated by the Solicitors Regulation Authority or the Council for Licensed Help To Buy
The issue of financing needs careful consideration. Mortgages are the usual solution, but securing these can pose great challenges to the average buyer.
It is no surprise that people are often unable from purchasing properties due to mortgage rates, plus the high deposit and income requirements. Besides the fact that interest rates can be a shock, understanding the terms and conditions of the loans is also tricky. That is on top of the reality that not all are actually eligible to get a mortgage loan.
We are sure you have a lot of questions! We bet that the idea of Help To Buy may have reignited your hopes of buying your own home. We are just as eager to show you how!
We will cover the process step by step, from determining if you are qualified to identifing the right scheme for you!
This scheme is the government financial assistance program that is intended to open doors for new buyers. It aims to bridge the gap between the property market and prospective buyers by providing loans that ease the budgetary strain.
This means low interest rates and a very relaxed payment period. Along with its more straightforward process, the Help To Buy scheme brings you so much closer to living in a new home.
Before we get too far into the details, we should verify first if you are qualified to borrow. The list below outlines the initial limitations for all government Help To Buy schemes.
You must be at least 18 years of age
No maximum household income level for eligibility
At least a 5 per cent deposit of the full purchase amount of the property
Covering 25 per cent to 75 per cent of the total purchase price
Certain aspects of eligibility vary between regions since property values are different for every area.
Additionally, when you buy your new home with the Help to Buy, you must not:
You will be expected to sell your current home (in the UK or abroad) if moving.
If you are moving from an existing home, whether in the UK or abroad, you are expected to sell it.
This scheme is not offered to buy-to-let investors or those looking to own land and build residential properties.
Always remember to never make fraudulent claims for your Help to Buy application, as doing so will make you liable to criminal prosecution.
There are different Help To Buy arrangements available to suit different circumstances. It is up to you, perhaps with the help of a qualified financial advisor to choose to one that will benefit you the most.
Do not pass up on this opportunity! The Help To Buy scheme holds the key to getting your new property. There is no need to worry if you have yet to fully understand the process because we are here to help you every step of the way! Allow us to support and fast track your journey.
If you are ready to make the leap on to the property ladder or if you want to get a sample Help To Buy computation for your dream home, our Help To Buy agents are awaiting your call. Feel free to reach out to our team of professionals today! We’ll be more than happy to help!
Help To Buy was established by the government to create an equity loan property purchase assistance program to assist first-time homeowners and buyers. It is expected to run until 2021. However, the scheme is limited to newly built homes only.
Borrowers begin to pay yearly fees on the borrowed amount after five years have passed since the date that the loan was granted. You can easily work out the expected fee as 1.75 per cent of the total value of your loan. You should also factor in an annual increase in this fee by the RPI plus 1 per cent until the loan is paid off.
The new Help To Buy scheme is only available for first-time buyers. This means it is limited to those who have not previously purchased property. There is also a regional property price cap based on the local property market value. The price cap is the maximum price of the newly built house that you can buy under the Help To Buy Scheme.
The government bonus you can receive can be determined by getting 25 per cent of the amount you have saved in your help to buy ISA. The minimum bonus is £400, and the maximum bonus is £3,000. This means that you should have at least saved £1,600 into your Help to Buy ISA to claim your bonus.
If you are considering buying a newly constructed home, Help To Buy schemes are a great choice that will assist you financially. Just make sure that the property you are looking to buy is built by a firm that is HCA registered. You will be granted a 20 per cent equity loan, or 40 per cent in London, from the government.
With Help To Buy, if you must have a deposit of at least 5 per cent of the property value, you are entitled to borrow up to 20 per cent of the purchase amount interest-free for the first five years. However, if you live in London, you can borrow up to 40 per cent!
It is highly recommended that you try to repay the loan within this period if you can. The Help To Buy Scheme UK loan is interest-free for the first five years! You can also consider “staircasing” or making lump-sum payments to reduce the ongoing costs associated after the interest-free duration expires.
The standard repayment period for the Help To Buy equity loan scheme is 25 years. However, if the home is sold, you will have to repay the loan value immediately at the same percentage of the proceeds from the sale. For example, if you received a 20 per cent equity loan at the time of purchase, you will also repay 20 per cent of the proceeds from selling your home.
The borrowers’ first question is always “how does the help to buy scheme work?” Here’s a quick summary of the payments required after you receive your government loan:
What is the Help To Buy scheme and how can it support you when you are struggling financially to purchase a new property? Find out if the Help To Buy schemes will be able to open doors for you!
These are the Help To Buy Schemes:
Interested in learning more about the benefits? Reach out to us and one of our Help To Buy agents will assist you.
All firms are regulated by the Solicitors Regulation Authority or the Council for Licensed Help To Buy
To provide more assistance in purchasing properties, there are a number of arrangements under the Help to Buy scheme for first-time home buyers.
Our Help To Buy agents can assist you in determining the best lending plan for property purchases according to your needs. Contact us today!