Help to Buy Home Buy Schemes
There are two schemes available, the Equity Loan scheme and the Help to Buy London scheme (which is based on the Equity Loan scheme).
Help to Buy Eligibility
✓ Be a first time buyer or a home mover. You cannot take part as a company or commercial concern.
2 Help to Buy Schemes available - Help to Buy Equity Loan and Help to Buy London
The Help to Buy Mortgage Guarantee scheme ended 31 December 2016.
What are the advantages and disadvantages of the schemes?
With the Equity Loan and Help to Buy London scheme, because you have no repayments for 5 years, you save money and you can also access cheaper mortgage products because you will normally be getting a 75% mortgage at most. In contrast, the Mortgage Guarantee scheme, which required you to get a much larger percentage mortgage from a commercial lender, involved you having to make larger monthly repayments.
On the negative side for the Equity Loan and Help to Buy London scheme, as well as the mortgage lender having a first charge on your property, the Government will have a second charge until you redeem its loan. Because it is an equity loan, if you do not pay it back and you come to sell, if house prices have increased, the Government will be due up to 20% (Equity Loan) or 40% (Help to Buy London) of any of the increase in price.
Help to Buy Conveyancing Solicitors - Experience Counts
The schemes involve more complexity than standard open market conveyancing and the mortgage lender AND the government will have charges on your property, as stated.
SAM Conveyancing offers highly experienced Help to Buy Conveyancing Solicitors - call 0333 344 3234 for a free, fixed fee quote or for further advice.