Getting on the property ladder is an exciting experience for young people and first timers. There is so much information and advice out there and coming in with a base level of knowledge can be intimidating. So where should you start?
Our expert team have knowledge and experience with Help to Buy mortgages and can provide a starting point for your journey into homeowner life.
A Help to Buy mortgage is a great option for first time buyers, with a small deposit amount of 5% required and a loan of up to 20% provided by the government. These statistics make the amount left to borrow from a mortgage provider significantly less.
Having a bigger deposit gives you an advantage when looking for a good mortgage rate. A Help to Buy equity loan can be used by individuals who are struggling to save for a deposit by providing them with up to 20% of the property’s worth. This only applies to new-build properties worth up to a maximum of £600,000 - the price cap depends on what region you are in.
The first 5 years are interest free with the Help To Buy equity loan, after this point they begin to charge interest.
Shared ownership is also an option in the Help to Buy scheme that allows you to buy a share of a property and pay rent on the remaining share. This could be between 25% and 75%, which could change over time depending on what you can afford.
Whether you are a first time buyer or previous homeowner looking for a more affordable option, shared ownership can make paying off a mortgage more comfortable and suited to your income.
The content on this page relates to the Help to Buy England Scheme and other parts of the UK have different schemes available which we can support you with.
From recent announcements it has been advised that 31st October 2022 is the final deadline to reserve a new build home and submit the application for the Help to Buy Equity loan (Property Information Form). By the 31st December 2022 the property you're buying must be fully built and ready for you to move in. Finally by 31st March 2023 you must have completed the purchase and moved into your new home. If you don't complete by this date, you won't be able to benefit from an equity loan from the government.
The deposit amount required is the main difference between a standard and Help to Buy mortgage. With a much lower deposit, it will be possible to purchase a property much quicker than applying for a standard mortgage.
The more deposit you can provide the less you will need to borrow from a lender. This can also entitle you to more appealing mortgage rates.