help to buy, new build conveyancing, residential conveyancing

Help to Buy – A helping hand to your new home

Are you thinking of getting a foot on the property ladder or wanting to ‘upgrade’ your present home?

Are you finding it difficult due to money constraints?

If so, the Government’s Help to Buy Scheme may be just what you need to help achieve your dream home.

The scheme, first launched in its present form in April 2013, has so far helped over 183,000 people to get on, or up the housing ladder.

In fact 81% of people who have benefited from the scheme have been first time buyers. Proof indeed that the scheme is helping those that need it the most in these trying times.

There are two parts to the Help to Buy scheme – Equity Loan and Mortgage Guarantee.

Equity Loans are open to both first time buyers and home movers on properties within England. The maximum purchase price is £600,000 and the property being purchased must be a new build.

With an Equity Loan, you will only need a 5% deposit. The Government may also give you a loan of up to 20% of the purchase price. This means that you would only need a mortgage for 75% of the purchase price of the property. The Equity loan, if paid back within the first five years of the loan, is interest free. If paid back after the first five years, then the interest rate applicable will be dependent on the prevailing interest rates at that time.

You can pay back part or your entire loan at any time with no additional fees incurred. The minimum percentage you can pay back is 10% of the market value of your home. The amount you pay will depend on the market value of the property at that time.

The Mortgage Guarantee scheme, as with the equity loan, is open to both first time buyers and people moving up the property ladder. The mortgage guarantee is available for properties throughout the UK and is also offered on ‘second hand’ homes. The maximum purchase price is still £600,000 and you only need a 5% deposit.

Under both the above schemes the property upon which the loan is secured must be your only residence. The property cannot be rented out either.

Help to Buy, as easy as 1, 2, 3

There are a lot of builders both locally and nationally who participate in the Help to Buy scheme. Here at Gaddes Noble Property Lawyers we guide you through whole process from start to finish. We aim to try and take the stress out of moving home. We also work with you in achieving a swift conclusion to the house buying process and you getting the keys to your dream home.

Once you have found the home that you are looking for, contact your financial advisor and they will be able to advise you as to whether you would qualify for the scheme or not. Don’t think that the schemes are only for people on low incomes as this is not the case. The scheme is open to everyone to apply for and the property, if a new build, is bought through an approved Help to Buy builder thus giving you the peace of mind that the property is backed by an approved new build guarantee scheme such as NHBC, Zurich or similar.

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