Buy Your Own Home
The Government created the Help to Buy scheme to help UK residents buy their own home or move up the property ladder. Help to Buy makes it possible to buy a new-build or existing home priced up to £600,000 with as little as a 5% deposit.
Help to Buy: Equity Loan
Available for New Build Homes in the UK
With a Help to Buy: equity loan the Government lends up to 20% of the cost of a new-build home, leaving a 5% cash deposit and a 75% mortgage to make up the rest. Additionally there are no loan fees on the 20% loan for the first five years of home ownership.
Help to Buy: Mortgage Guarantee
Available for new build and existing homes in the UK
Under the mortgage guarantee scheme the Government offers lenders the option to purchase a guarantee on mortgage loans. This means that mortgage lenders taking part are able to offer home buyers a higher loan-to-value mortgage (80-95%). Owners are still fully responsible for the mortgage repayments.
Help Choosing the Right Mortgage
Choosing the right mortgage to suit your financial circumstances can be a tricky process. We’re here to help explain the pros and cons of the various mortgages on offer:
- Fixed-rate Mortgage: You pay a fixed rate of interest for a set period typically over two, three or five years.
- Standard Variable-Rate Mortgage: Linked to the Bank of England rate changes, though changes may not happen to your mortgage rate at the same time or by the same amount.
- Tracker-rate Mortgage: Usually linked to the Bank of England bank rate
- Offset Mortgage: Links a current or savings account to a mortgage and the amount in these accounts is offset against an outstanding mortgage
- Discount Mortgage: If the mortgage lender’s standard variable rate (SVR) increases or decreases, repayments are discounted to reflect this.
For more information about your mortgage options, please contact us.
