Help to Buy Our initial meetings are free without obligation . Once you decide to proceed with an application we charge a broker fee of £250 on a successful mortgage application. The only time when a different Broker fee of £400 would apply is if there was adverse credit, such as county court judgements iva's, etc.to reflect the additional work needs to be carried out.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
The Basics The government will lend you up to 20% of the value of a
property in the form of an equity loan. You will have to find a 5% deposit and
secure a mortgage to cover the other 75% of the cost of the property.
Covers new build properties valued under £600,00 only Open to all potential and existing homeowners (it's an
expansion of the First Buy scheme). There is no salary cap or joint income limit applied
How Does It Work?
With a 5% deposit saved, the government's Help to Buy equity
loan scheme allows you to borrow up to 20% of the value of the property. You
will have to secure a mortgage to cover the other 75% of the cost of the
property. this Help to Buy equity loan is interest free for the first
5 years, after which you will be charged a fee calculated at 1.75% of the
equity loan plus 1%. The fee rate slowly increases year on year in line with
the Retail Price Index. These repayments will sit alongside your mortgage
repayments. If you can repay your equity loan within the first five
years (highly recommended) then you may not have to pay any additional fees, please check with the Government Help to Buy scheme for further information as terms and conditions may change.There is a monthly management fee which is around £1pm however could be subject to change (please check at time of considering taking out Help To Buy). Please check full terms and conditions with the Help To Buy Scheme for a full explanation of how the scheme works. If you can make part repayments through what they call 'stair casing' it will reduce your fees and will mean you are entitled to a
greater share of the total sale proceeds when you sell. Paying it all off in a
lump sum is also a great option if you can afford to. When you come to sell your house (or after 25 years) you
will have to repay the equity loan amount back in full. remember this is an equity loan and the government will own
20% of your property. The consequence of this is that if house prices rise and
the value of your property increases you will still owe 20% of the value of the
property which will now be a larger amount. On the other hand if prices fall
you will also still owe 20% which will be less than it was originally. once you find a property which operates within the scheme
you will have to confirm which lenders you can use. This means your choice of
mortgage will be more limited than if you purchased on the open market, but you
can still get a good deal.
Am I Eligible? If you have a deposit of 5% or more a good credit history,
sufficient income and do not own any other properties, you should be eligible, however this will also depend on your overall credit profile, income and expenditure.
Should I Do It? Mortgage Search welcomes this scheme as a way of helping
people get on or move up the property ladder who otherwise may not be able to
do so.
It is more likely to make sense if you expect to stay in the
property for a number of years. You will benefit most from this scheme if you can pay off
the equity loan within the first 5 years before the fees kick in. You need to
look at your budget and see if you can afford to do it alongside your mortgage
repayments You will also have to pay all the other costs incurred when
buying a home like stamp duty and legal fees. There may be options to make this scheme even more
affordable for you and ensure you pay the loan off within the first five years
such as renting out the second room to help you make repayments. Be honest about the new builds you are looking at. You are
going to be here for the next 5 years at least if you want to avoid negative
equity is there enough storage, are you expecting to start a family in that
time, does furniture fit in the rooms? You will not be offered an interest only mortgage, so you
will have to ensure you are able to repay a capital repayments mortgages
alongside the fees and equity loan repayments. Just because this is a government scheme doesn't mean you
get any more protection. It is your responsibility to keep up repayments on the
mortgage and equity loan.
How Do I Do It? Help to Buy equity loan homes are available from house
builders registered to offer Help to Buy homes across England. Their
advertising material should make it clear if Help to Buy homes are available on
their development sites.
To find your local Help to Buy agent click here (you are now
departing from the regulatory site of Mortgage Search Neither Mortgage Search nor First Complete Ltd is responsible for the accuracy of information contained
within the linked site)For further information see https://www.helptobuy.gov.uk/ "
Our initial meetings are given to
you free with no obligation.
Mortgage Search only apply for a mortgage once we have
spoken to an underwriter and checked the affordability with the Lender, prior
to submission.
Contact Us
If you would like to know more about what products are
available, please contact our specialist Mortgage Brokers on 01253-407707 or 07779605656 to arrange an appointment. Or if you
would like any help with a mortgage quote or insurance quote , make sure you
contact our team today.
Terms and conditions apply
Ian Howarth trading as Mortgage Search is an Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products.