Help to Buy Eligibility
To take part, you must:
- Be a first time buyer or a home mover. You cannot take part as a company or commercial concern.
- Contribute at least 5% of the property price as a deposit.
- Get a repayment mortgage, not an interest only, offset or guarantor mortgage.
- Not own any other property anywhere in the world at the time of purchase.
- Not sublet any of the spare rooms.
- Not have any overdue payments on loans of any sort, or County Court Judgements (CCJs) over £500 against you or be subject to a bankruptcy order in the previous 3 years.
- Not combine this scheme with any other Government housing scheme or get your deposit from a Government scheme.
2 Help to Buy Schemes available - Help to Buy Equity Loan and London Help to Buy
To find out more about these schemes, click on Help to Buy Equity Loan
Scheme ends 2021.
The Help to Buy Mortgage Guarantee scheme ended 31 December 2016.
What are the advantages and disadvantages of the Help to Buy Home Buy schemes?
It depends on your individual circumstances.
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
You are well advised to employ a conveyancing solicitor with experience of Help to Buy when opting to use either of the Help to Buy schemes to buy a house.
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.
*Help to Buy Specialists - Fixed Fee – No Sale No Fee – On all Mortgage Lender Panels
