Government Help to Buy Scheme

There has been a lot of news coverage about the Government Help to Buy Scheme recently. The Scheme is designed to help people who cannot afford large deposits to get on to the property ladder. This in turn keeps the property market moving.

In order to be eligible for assistance from the Help to Buy Scheme you need to have at the very least a 5% deposit, be looking to purchase for less than £600,000 and you must intend on living at the property you are to buy for most of the time. Therefore landlords and second home owners cannot use the scheme.

There are also 2 parts to the loan known as equity loans and mortgage guarantees.

Equity loans are designed specifically for people who wish to purchase a new build property. On top of your 5% deposit, the Government will lend you up to 20% of the property value. The loan is interest free for the first five years but after this time an annual admin fee is payable.

Mortgage guarantees are where the Government will guarantee to repay your lender a certain amount of the mortgage in the event you default on payments. This allows the lender to lend to people with smaller deposits with less risk to them.

For more information please contact Sharon Sangha at Lawson-West on 0116 212 1000.

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