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Help to Buy Mortgages

How can the Government's Help to Buy scheme help you buy your homeFind out if you are eligible for the Help to Buy Equity loan, how to apply and how Fairview Financial can help you get a mortgage.







HELP TO BUY EQUITY LOAN

The Help to Buy Equity Loan scheme can assist you in buying your first home or upsizing your existing one with only a 5% deposit supported by a further 20% from the Government. 

How does the Help to Buy Equity Loan work?

With a Help to Buy Equity Loan, the Government lends you 20% of the cost of your home (or up to 40% for London). You can therefore buy your first home with as little as 5% deposit and apply for a 75% mortgage. This equity loan significantly reduces your monthly mortgage payments in the first 5 years and should give you access to lower mortgage rates as you only need to borrow 75% of the property value from the lender. Historically 75% mortgage rates have been far more competitive than the 95% options. Contact Fairview Financial to discuss your mortgage options and our experienced brokers will search across the market to find you the most competitive rates. 

You will not be charged interest on the 20% loan for the first 5 years of your mortgage. After this you will only pay interest on the original loan amount. For example, if your loan is £20,000 but you owe £25,000 after 5 years because your house price increases, interest is only charged on the original £20,000.

The loan can be paid back either at the end of the mortgage term, or when the property is sold, whichever comes first. The amount you pay back depends on the market value of your property. You are able to pay back part or all of the equity loan at any time during the mortgage term, as long as any repayment you make is at least 10% of the market value of your home.


ARE YOU ELIGIBLE FOR THE HELP TO BUY EQUITY LOAN?

  • You may be a first-time buyer or a home mover. If you are a home mover you can be eligible as long as your existing property sells before the completion of your Help to Buy mortgage. 
  • You are looking to buy a new-build property
  • You are buying a property with a maximum value of £600,000 if your property is in England (this threshold varies across the UK).
  • You have a minimum 5% deposit. Many lenders will also accept a gifted deposit too. 
  • This will be your only property.

 

HOW DO YOU APPLY FOR THE HELP TO BUY EQUITY LOAN?

Before applying for the mortgage there are a few necessary steps to take and Fairview Financial can guide you in the right direction. You will have to contact your local Help to Buy agent who will check your eligibility. Help to Buy agents are appointed by Homes England and they administer the Help to Buy Equity Loan scheme but not the mortgage process. 

If you intend to make an offer on a new build property, it is often beneficial to register for the Help to Buy support before you make an offer. Estate agents and developers will often wish to see this before they will accept your offer on the property. 

 

Once you have found a suitable new-build property with a registered builder, you will need to complete a Property Information Form (PIF) and a Reservation Form with the builder. If you meet the eligibility criteria you will then be issued with an Authority to Proceed (ATP) by the Help to Buy agent. It is imperative that you have this document before you look at applying for a mortgage with Fairview Financial.


 

HOW CAN FAIRVIEW FINANCIAL ASSIST YOU WITH A HELP TO BUY MORTGAGE?

Once you have the Authority to Proceed you can book an appointment with Fairview Financial to discuss your options and start your mortgage application or arrange an Agreement in Principle (AIP). Our mortgage broker will support you from the beginning of your mortgage application throughout the whole process until completion, when you pick up the keys to your new house. 

If you are a first-time buyer Fairview Financial will not charge you a fee. For more information on first-time buyer mortgages click here. We have helped numerous clients in Cheltenham, Gloucestershire and the surrounding area to get on the property ladder or move home with the assistance of the Help to Buy Equity Loan scheme. Call 01242 697821 for mortgage advice.

 










WHAT ABOUT THE HELP TO BUY ISA?

Help to Buy ISAs are another way the Government is helping first-time buyers saving up for a mortgage deposit. 

Hoes does the Help to Buy ISA work? Save into a Help to Buy ISA and the Government will boost your savings by 25%. The maximum Government bonus you can receive is £3,000 and, as with other ISAs, this money won't be taxed. This bonus is available to each first-time buyer, not per household, so if you are planning to buy with your partner you could receive together a Government bonus of up to £6,000 towards your first home.  

How do you qualify for the Help to Buy ISA bonus? 

  • You must be a first-time buyer, and 
  • The house you are looking to buy must be worth less than £250,000 (or less than £450,000 in London).

Buying your first house can be an equally exciting and daunting prospect but Fairview Financial are in hand to make this process as straightforward as possible and offer you support from start to finish. You will be happy to hear that we won't charge any fees to first-time buyers. To find out how we can help call 01242 697821 for advice. 

 

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Fairview Financial can review your current mortgage at no cost. We have access to thousands of remortgage deals.

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