The Help to Buy initiative was introduced by the UK government in April 2013 to allow first time buyers and home movers to purchase a new home with a 5% deposit. Scotland followed with its own Help to Buy Scheme in September 2013 and a nationwide Help to Buy Mortgage Guarantee Scheme which launched in October 2013.
Having already helped over 10,000 first time buyers and home movers, the schemes are proving extremely popular. As one of the UK’s leading mortgage advisors we have specialist knowledge of both of the Help to Buy schemes and can offer free whole of market advice, as well as guide you through the scheme and purchase process.
As part of our services, we will appoint you with your own dedicated mortgage advisor who will find the most appropriate solution available to you. This same advisor will complete the application forms on your behalf and work with local government agents to ensure that your home buying process is as smooth as possible.
The Help to Buy Equity Loan scheme is available on new build properties from participating home builders and offers an interest rate as low as 2.34%. A minimum of a 5% deposit is required in order to receive a 20% equity loan from the government, followed by a 75% mortgage from a qualified lender.
Unlike other shared equity schemes, you will retain 100% ownership of your home. In England the equity loan from the government will be interest free for the first 5 years. After year 5, a 1.75% fee is payable which will rise alongside RPI inflation, plus 1% annually. In Scotland the equity loan remains interest free for the duration of the loan.
The Help to Buy Mortgage Guarantee scheme is the second phase of the government scheme was launched in October. This scheme gives both first time buyers and home movers access to 95% mortgages, 15% of which will be guaranteed by the government. Both new builds and existing properties are included in this phase of the scheme.
To apply for Help to Buy or if you are interested in finding out more, please select your nearest branch and give us a contact us today to find out what our free advice can do for you!
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. FIRST MORTGAGE IS A TRADING NAME OF FIRST MORTGAGE DIRECT LIMITED WHICH IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY. IN ENGLAND AND WALES YOU MAY BE REFERRED TO AN ADVISOR FROM FIRST MORTGAGE (NE). FIRST MORTGAGE (NE) IS A SEPARATE ENTITY AND IS A TRADING STYLE OF M&R FM LTD, WHO ARE AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY