We would be delighted to help you secure your first home. Don’t let it overwhelm you, we can understand your circumstances, research the mortgage deals on offer and help you make the right decisions. Whether your deposit is 5% or 50% from savings, bank of Mum & Dad or a Help to Buy scheme, we will make the complicated, simple.
We have put together a little bit of information below on government introduced schemes designed to help First Time Buyers onto the property ladder. The main schemes are Shared Ownership or Help to Buy and most recently the governments Mortgage Guarantee Scheme (April 2021 – December 2022).
Help to Buy (HTB) is a government scheme. It allows first-time buyers purchasing a new build property to borrow up to 20% of the property's value (or 40% in London). The loan is directly from the government, and you pay the capital back when you sell the property in the future.
Between April 2021 & December 2022 the government will provide guarantees to several mortgage lender which enables them to supply 95% Loan-To-Value mortgages for First Time Buyers. Eligible applicants may be offered increased borrowing figures when they take out a 5- or 10-year fixed rate product.
The HTB Equity Loan scheme is available for new build properties with a purchase price of up to a maximum of £600,000 (Regional caps apply). The government will lend you up to 20% (40% in London) of the cost of a brand-new home, meaning you only need a 5% cash deposit and a 75% mortgage. The Equity Loan is interest free for 5years, then interest is applied at a modest rate and the loan is repaid monthly. When you mortgage product ends, we would look into the possibility of consolidating this equity loan into your main mortgage.
If you're a first-time buyer, a Shared Ownership scheme allows you to buy a share of a new home, between 25% & 75% of the property. You then contribute a minimum of a 5% deposit of the share you are buying and pay a subsidised rent on remaining share to a housing association or housing developer. In the future as your income increases or circumstances change you can increase your share of ownership. Usually purchasing a further 10% share at a time. This is known as ‘Staircasing’. When you buy a share in a property, you're liable to pay Stamp Duty Land Tax (SDLT).
Mortgage Business are independent Mortgage advisers, and as so, have no ties or loyalties to any company offering mortages or any other financial or insurance products we sell. We only recommend the products we think are best suited to customer’s individual requirements. Our business is built entirely around getting customers the correct mortgage deal that is right for them.
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