Help To Buy Schemes

This comprises of 3 schemes:

  • Equity Loan (available now) where the Government will loan you up to 20% of the value of your new build home, and
  • Mortgage Guarantee (available from 7th October 2013) where lenders are incentivised to make more mortgages available to people with small deposits and covers all types of property, not just new build. NB: This scheme is ending on 31st December 2016.
  • New Buy (available now) lets you buy a newly built home with a deposit of only 5% of the purchase price.

Equity Loan Conditions:

  • You do need to have a minimum of 5% deposit to be eligible for the scheme
  • Meet appropriate tests to ensure you can pay back the deposit.
  • The maximum property value up to £600,000
  • Open to both first time and existing buyers
  • Not available for Interest Only mortgages
  • Not available for Buy To Let properties
  • Not available for Incorporated companies
  • The Equity Loan can be repaid at any time or by the end of the term of the mortgage or at the sale of the property.

The loan is interest free for the first 5 years. From year six a fee of 1.75% is payable on the loan, which rises annually by RPI inflation plus 1%

Mortgage Guarantee

The Government is offering to provide guarantees to lenders on a proportion of the mortgage, so if a property is reposessed, the Government will cover a proportion of the losses suffered by the lenders.  The Government hopes this will make lenders offer more mortgages for high loan to value properties. It is available for both new build and older properties up to a value of £600,000. It is open to individuals with a deposit between 5% – 20%.

Suitable for:

  • Value up to £600,000
  • First time buyer or existing owner
  • New property or older
  • Residential only
  • Repayment only

To see which scheme might be suitable for you, take a look at this handy checklist from RightMove.

Help to Buy Remortgage

Is your Help to Buy mortgage product coming to an end? There are ‘Help to Buy remortgage’ deals up to 75% loan to value on the market or if you would prefer to pay back your Help to Buy Government Loan and then remortgage, there are products available up to 90% loan to value. These are mortgage products available over 2, 3 and 5 years.

Help to Buy ISA

The government is offering the Help to Buy ISA for First Time Buyers. This allows the ISA holder to earn up to 2.5% interest tax-free and then the government will top-up the account with 25% tax-free cash. This scheme is only available for purchasing a property under £250,000 (£450,000 in inner & outer boroughs of London).

For more information visit: https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/

and a Guide from HMRC https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/413899/Help_to_Buy_ISA_Guidance.pdf

New Buy

The New Buy scheme lets you buy a newly built home with a deposit of only 5% of the purchase price.

Who qualifies?

To qualify for NewBuy, your new home must be:

  • a new build – being sold for the first time or for the first time in its current form (eg a new flat that used to be part of a house)
  • priced £500,000 or less
  • your main home (you can’t use NewBuy to buy a second home or a buy-to-let property)
  • owned fully by you (you can’t use NewBuy for shared ownership or shared equity purchases)
  • built by a builder taking part in the scheme

To qualify you must be either:

  • a UK citizen
  • someone with the right to remain indefinitely in the UK

You don’t have to be a first-time buyer and there’s no limit on your level of income. But you can’t use NewBuy with any other publicly funded mortgage scheme.

The government’s own website gives more details here
To find out how you can take advantage of these schemes, why not call us
on 01223 329666
  • Turney Mortgages

    Mortgages

    Our friendly, no fuss, truly independent approach to getting the best mortgage for you

     
  • Turney Equity Release

    Equity Release

    We will take the time to understand your hopes and concerns for the future.

     
  • Turney Insurance

    Insurance

    A wealth of experience in sourcing and arranging both personal and commercial insurance.

     
  • Turney Commercial

    Commercial

    Whatever the scale of your requirements our expierienced advisors can source the best deal.

     
  • Turney Legal Services

    Legal Services

    Our legal services, conveyancing and surveys