Help To Buy Scheme

where to get help to buy scheme, how to get help to buy scheme, what to consider when getting help to buy scheme

Who Can Qualify For Help To Buy Scheme?

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.

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All firms are regulated by the Solicitors Regulation Authority or the Council for Licensed Help To Buy


Help To Buy
help@helptobuy.org.uk
0800 009 6634
1st Floor, Suite 2, 40 Charlotte Square, Edinburgh, EH2 4HQ
5
5
1412
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Understanding & listened to our requirements

We found so far that they listen & understand our requirements, all ways available to answer any questions that we have had. Like most people who only get chance to check emails after work, when sent or responded to there emails they answer promptly at evenings & weekends. This is the 3rd time we have used the mortgage company and they meet our requirements.

Steve & Amy
Caroline & Nasreen were both very…

Caroline & Nasreen were both very informative and kept me updated all the way through. I had full trust in them right from the beginning. Would definitely recommend and hope to work with them again in the future.

Dexter
I was supported right from my first…

I was supported right from my first contact. I am going through a divorce and needed quick responses...I was accommodated and supported at all times. My Account Manager Fiona has gone above and beyond her required services.

Tanya Geldard
Well what can I say from start to…

Well what can I say from start to finish I have had exemplary service Suzy and her team have been amazing keeping my spirits up when I needed a boost and such a friendly knowledgeable manner I would certainly recommend to friends and family and would use again but sincerely hope I don’t need to.

Karen Rich
Fantastic service from Jo and Matt

Fantastic service from Jo and Matt. We have been struggling for a few years to get a mortgage but Jo was able to achieve this for us. We are really grateful.

Mrs Marais
Excellent service as usual

Excellent service as usual! Matt and Jodi are amazing! Thank you soo much for your help and answering my crazy questions.

Lisa Tilbrook
First Class Customer Service

Just completed on my first home. A massive thank you to Chris Summerson who found me exactly the mortgage deal I was looking for. Professional and friendly service throughout.

Graham Holbrook
Absolutely Outstanding Service

Jodi has been utterly brilliant and the service provided absolutely perfect, worth every penny. I urge any first time buyer to use The Mortgage Broker Ltd, it just takes all the stress and confusion out of the process and gives you access to an expert who can answer all of your questions honestly and with ease.

Alex H
Such a Positive Experience!!!

Such a positive experience!!! Would recommend it to anyone. Oliver had so much patience with me what is much appreciated. Guys are happy to answer all your questions and are happy to help / explain all documentation which I always struggle with. I'm hoping to hear from them again in about 18 months . Thank you Oliver!

Gosia Olejnik
Excellent and Fast Service

We used the mortgage broker to source a remortgage for our buy to let property. They were very professional and we were very delighted with the deal and service we got from them. Fiona and Becca also kept us updated on the progress of the application and we were able to complete the whole process under 30 days. Highly recommend them to anyone looking for a mortgage broker.

Ade G

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!

What is the Help To Buy scheme?

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.

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    Am I Eligible For Help To Buy?

    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.

    AGE

    You must be at least 18 years of age

    HOUSEHOLD INCOME LEVEL

    No maximum household income level for eligibility

    DEPOSIT

    At least a 5 per cent deposit of the full purchase amount of the property

    MORTGAGE

    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:

    • Own or have your name attached to the deeds of any other property, whether in the United Kingdom or outside the country. If you are married, and you and your spouse jointly own property, you are treated as a homeowner. The home bought with the Equity Loan must be your only home.

    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.

    • Rent out or sub-let the property you get from the scheme, except if you have written consent.
    • Have financial interest in other residential properties, even if you don’t live in the building.

    Always remember to never make fraudulent claims for your Help to Buy application, as doing so will make you liable to criminal prosecution.

    Help To Buy Scheme Pros and Cons

    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.

    • Equity Loan
      The equity loan scheme includes a government loan amounting to 20 per cent of the property price, or 40 per cent for properties in London. However, the buyer must be able to pay a deposit of 5 per cent of the property value and cover the remaining value through a mortgage. The loan will not incur any interest at all in the first five years and is payable for a maximum of 25 years!
    • Shared Ownership
      As the name suggests, the property is partly owned by the buyer and partly owned by the local council or developer. Shares can be adjusted depending if the buyer has become more financially stable.
    • Help To Buy ISA
      The ISA help to buy scheme is for those saving up to cover the deposit money of the property. For every £200, the government adds a 25 per cent bonus for savings up to £12,000. The bonus is awarded after the property purchase has been secured.
    • Lifetime ISA
      Similar to the scheme above, the government will award a 25 per cent bonus on savings for a property deposit. Only up to £4,000 can be saved annually.There are a few conditions to remember when choosing properties to purchase using this scheme. It is important to take note of the following restrictions:

      1. Help to Buy is only available for newly built homes by HCA registered constructors.
      2. You are not allowed to use the loan to purchase property that you intend to rent out or lease.
      3. You are also not allowed to rent out your former house.
      4. The overall price of the property should not exceed a certain amount which is set depending on your area.

    Begin Your Application Now! Get In Touch With Us Today!

    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!

    FREQUENTLY ASKED QUESTIONS

    Is the Help To Buy scheme still available?

    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.

    What happens after 5 years of Help To Buy?

    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.

    Is Help To Buy only available for first-time buyers?

    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.

    How much do I get with a Help To Buy ISA?

    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.

    Is Help To Buy a good idea?

    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.

    How much can I borrow with Help To Buy London?

    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!

    Can you pay back a Help To Buy loan before 5 years?

    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.

    How do you pay back Help To Buy?

    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.

    Equity Loan: How To Pay This Help To Buy Scheme Loan

    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:

    • The First 5 Years
      One of the greatest benefits of applying for a Help To Buy loan purchasing plan for properties is that you will incur zero interest on your equity loan for the first five years. During this period you will only need to pay for a monthly management fee of only £1 a month.
    • Starting Year 6
      This is the time when you will start to pay monthly to cover interest at 1.75 per cent of the outstanding value or the equity loan per year. Take note that the interest rate will rise annually in April following the RPI, or Regional Price Index, plus 1 per cent – until your loan is fully paid back. The £1 monthly management fee also continues for as long as you have an outstanding loan balance.

    Here’s How You Can Choose Help To Buy Schemes For You

    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:

    1. Equity Loan – Enjoy borrowing 20 per cent of the value of your property interest-free for five years.
    2. London Help To Buy – Exclusive for London, enjoy an additional 20 per cent on top of the regular Help To Buy Equity Loan, for a total of 40 per cent of the purchased property value.
    3. Help To Buy: ISA – Saving up for mortgage deposit? Earn up to 2.58 per cent interest tax-free, and the government will provide an additional 25 per cent boost to your savings.
    4. Shared Ownership – An excellent option for non-homeowners who earn less than £80,000 annually and who are considering owning a share of a home.

    Interested in learning more about the benefits? Reach out to us and one of our Help To Buy agents will assist you.

    Get Expert Help To Buy Mortgage Advice

    All firms are regulated by the Solicitors Regulation Authority or the Council for Licensed Help To Buy

    Here’s How Help To Buy Schemes Work For First Time Buyers

    To provide more assistance in purchasing properties, there are a number of arrangements under the Help to Buy scheme for first-time home buyers.

    • Shared ownership – he property is at least 25 per cent owned by the buyer and the rest owned by the local council or property developer. The share percentage can be increased if the buyer has become more financially able.
    • Equity Loan – The government loans 20 per cent of the property price, provided that the buyer can pay a deposit of 5 per cent of the property value and cover the remaining cost through a mortgage. The loan won’t charge any interest in the first five years.
    • Help to Buy ISA – For those saving up to cover the deposit money for a property. For every £200 saved, the government adds a 25 per cent bonus, this is valid for savings up to £12000. The bonus is awarded after purchase contracts have been secured.
    • Lifetime ISA – Similar to the scheme above, this is a property purchase plan wherein the government will award a 25 per cent bonus for savings for a property deposit. Only up to £4000 can be saved annually.

    Our Help To Buy agents can assist you in determining the best lending plan for property purchases according to your needs. Contact us today!