Help to Buy Mortage Advisors

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You’ll need at least a 5% deposit for your new home under the terms of the Help to Buy: Equity Loan scheme. The government will lend you up to 20% of the value of the property (40% in London) and you’ll need to take out a mortgage for the remaining 75% (55% in London).

Each month you’ll make repayments on both your Help to Buy loan and your mortgage. Here’s an illustration of what you would pay on the Help to Buy initiative each month:

  • Purchase price: £310,000
  • Less deposit: £15,500
  • Help to Buy equity loan: £62,000
  • Mortgage: £232,500
  • Your monthly repayment: £806.87*

*This illustration represents a capital repayment mortgage over a 30-year term on a two-year fixed rate of 1.54% with a £999 arrangement fee and a free basic mortgage valuation. Example rates vary daily so this illustration does not constitute an offer and any mortgage is subject to full underwriting, affordability and credit scoring via the lender. Both this rate and the product were valid at the time of writing.

Remember that a mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

If you want to find out more about Help to Buy or would like to know if you’re eligible for a Help to Buy: Equity Loan, contact our expert mortgage advisers and we’ll talk you through your options. Call us on 08454 500200 or click here to get in touch.

To qualify for the government’s Help to Buy: Equity Loan scheme, you’ll need to satisfy the following key criteria:

  • You must have at least 5% of the sale price of the property to use as a deposit.
  • The new home must be valued at less than £600,000.
  • It must be a new-build property.
  • It must be your only property.
  • The property cannot be rented out to tenants.
  • When you sell the property, you must repay your equity loan at the same ratio as you borrowed, i.e. if you borrowed 20% as an equity loan, you’ll repay 20% of the sale price.

If you need help understanding Help to Buy or would like to know if you’re eligible for a Help to Buy: Equity Loan, talk to our expert mortgage advisers and we’ll help you make it happen. Call us on 08454 500200 or click here to get in touch.

Help to Buy is an equity loan scheme provided by the government to help first-time buyers and existing homeowners get into a brand-new home in a more affordable way and just a 5% deposit.

The conditions are that the new-build property must be less than £600,000, your only property and you cannot rent it out to tenants. You can borrow 20% of the purchase price (40% in London) and make up the rest of the price through your deposit and a repayment mortgage. The loan will be interest free for the first five years as long as your deposit is at least 5% of the purchase price. In year six, you’ll be charged 1.75% and, after that, fees will rise by inflation linked to the Retail Prices Index (RPI) plus 1% each year.

The government’s equity loan element must be repaid after 25 years – earlier if you sell your home in that time. When you sell your home, you must repay the same percentage of the proceeds of sale as you borrowed, for example, if you borrowed 20% as your equity loan, you’ll repay 20% of the proceeds of your sale.

If you’d like to know more about Help to Buy or have found a new-build home that you need a mortgage for, talk to our expert team of mortgage advisers and we’ll guide you through the process. Call us on 08454 500200 or click here to make an enquiry.

The government’s Help to Buy: Equity Loan scheme is designed to get people into a brand-new home with just a 5% deposit. In essence, the government will lend you up to 20% of the cost of your new-build home, leaving you to pay a 5% deposit and take out a 75% mortgage to cover the rest of the funding. Most importantly, you won’t be charged any fees on the 20% loan for the first five years.

To be eligible for a Help to Buy loan, your new home must be newly built and under £600,000. You can’t own any other property and you won’t be able to sublet your new home or take a part-exchange deal on your old property.

The Help to Buy: Equity Loan scheme is only available in England and, in London, where house prices are historically higher than the rest of the country, the upper limit for the equity loan provided by the government is 40%.

The Help to Buy: Equity Loan scheme will run until 2023 – on 1st April 2021, it will be restricted to first-time buyers only and regional price caps will apply. If you’re thinking of taking advantage of the initiative and currently own a home, you’ll need to apply before April 2021.

If you’re interested in buying a new home with Help to Buy, contact our team of expert mortgage advisers and we’ll explain in more detail how the scheme can apply to you and get you started on your moving journey. Call us on 08454 500200 or click here to make an enquiry.

Focusing on a new build property is another choice available to homebuyers - such as prioritising a detached property, townhouse, cottage or perhaps a bungalow. And, whereas some prefer to opt for period features or character charm in a second hand home, there is also the new build route – a blank canvas to put your own mark on it.

Weighing up the pros and cons of both is the best way to decide which route to take and here are some advantages if you decide to buy a new build.

 

HELP TO BUY SCHEMES

There are various Help To Buy schemes available to you. Help to Buy is a government initiative that’s helping first-time buyers and those moving home buy a brand-new home with just a 5% deposit. As long as the property you want to buy is a new-build home valued at less than £600,000, you could qualify for the scheme.

We’ll talk you through our lenders’ criteria and find the right product for you so you can start looking for your perfect home with absolute confidence and peace of mind.

 

NO CHAIN

This can be a very attractive reason to choose a new build home – removing a sometimes-stressful element of moving property. Alleviating the chain means you stay in control and won’t be at the mercy of other buyers and the house is ready to move into!

 

PERSONAL TOUCH

The property will be untouched by any previous owners, leaving you with a blank canvas to work with and style up as your own.

 

10-YEARS, GUARANTEED!

New build homes come with a 10-year protected warranty, so if anything went wrong, you’re covered for up to 10 years. This, obviously, isn’t the case when you built a ‘second hand’ home.

 

ECO-FRIENDLY

The day to day running of a household can be quite expensive once you’ve broken it down by electricity, water rates, heating etc. All new builds are built to the latest building standards, which includes water-saving sysstems, low CO2 emmissions, double-glazed windows, energy efficient boilers and insulation. New builds will be cheaper to run and maintain and the common sense approach to take.

 

EXCELLENT QUALITY

New build houses are built to an excellent quality, from the new fixtures and fittings to lightweight trusses in the roof, double glazed windows and insulated walls. The builders also work closely with local planners and the Environmental Agency to ensure they are creating a development that isn’t at risk of flooding.

 

To speak to one of our Mortgage & Protection Advisers that specialises in new build, please call us on 08454 500200, visit www.chartersfinancialservices.co.uk or email hello@chartersfinancialservices.co.uk.

We would highly recommend Simon and the team at MAB.

Simon is extremely professional, provided honest advice and was able to find and talk us through our financial options and the best products available to us.

His knowledge in the field is fantastic and he was always willing to talk through any complex situations and clarify things (mainly for myself!) We were on a tight timeframe to exchange and Simon and the team were able to arrange everything we needed in time.

I also have to thank Cara in the team, who has been incredible in keeping us updated on progress, explaining things in Layman’s terms and going over and above to chase paperwork/updates for us. We cannot thank the team at MAB enough.

Imogen W

February 2020

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