Pay only 80% but own 100% of your home with the Government backed Help to Buy scheme.
The Help to Buy scheme is an equity loan scheme from the Government enabling you to get as low as a 75% mortgage.
Provided you have 5% deposit the Government will lend up to 20% of the value of your home totally interest free for the first five years to enable you to get a lower loan to value mortgage on a lower mortgage amount. In the sixth year an interest rate of 1.75% will be charged which will be index linked thereafter.
The loan can be repaid at any time, but must be repaid when you sell your home.
Help to Buy is available to all buyers of new homes built by house builders participating in this scheme whether you’re a first time buyer or a seasoned mover.
The main benefit of this scheme is that it allows buyers to purchase a home which might have previously been unaffordable and allows you to get a lower loan to value mortgage which could reduce the interest you pay.
The maximum house value covered by this scheme is £600,000.
How it works:
You will need 5% deposit of the full purchase price to put down to secure your mortgage.
Subject to eligibility, applicants will be offered an equity loan up to 20% of the purchase price provided by the Government. This loan is interest free for the first 5 years.
The amount of loan can be adjusted to suit your needs – it doesn’t have to be as high as 20%.
Mandale Homes puts you in contact with an Independent Mortgage Advisor qualified to deal with your Help to Buy purchase and to qualify you as a purchaser to enable you to buy your new home.
You get a mortgage for the remaining amount required to purchase your new home through an Independent Mortgage Advisor.
For more information visit: www.helptobuy.org.uk