Buying a house is difficult – house prices are high and this is making it hard for buyers to save up for the large deposits required to purchase a property with a mortgage. The government is currently introducing initiatives make buying a house easier for people. The ‘Help to Buy: Mortgage Guarantee’ is the most recent of these initiatives and aims to help people get onto or move up the property ladder.
What is a Help to Buy: Mortgage Guarantee?
A Help to Buy mortgage requires a much smaller deposit than a normal mortgage. This is because the government guarantees the mortgage so providers are able to provide you with a mortgage for a much smaller deposit than you would have had to save up for previously. You may need to deposit as little as 5% of the total cost of your property to buy a house under the new scheme. Mortgages will be between 80% – 95% of your home’s purchase price.
When Can I Get a Help to Buy Mortgage?
Now! Certain banks are beginning to offer Help to Buy mortgages this week. Natwest, RBS, Bank of Scotland and Halifax will be the first lenders to offer mortgages under the scheme. Virgin Money and Aldermore Bank will also be offering mortgages under the scheme from in the New Year. Start your mortgage application now; it is always the best idea to start applying for your mortgage as soon as possible, and before you start viewing homes. This is because if there are any complications with your mortgage you may lose out on your perfect home if you have already had an offer accepted.
Who Can Get a Help to Buy Mortgage?
You can get a help to buy mortgage if you are buying a new build property or an existing property in the UK. You will probably be able to be able to be helped by the scheme, as long as you are not: –
– Buying a second home
– Buying a property worth more than £600,000
– Have a struggled with debt repayments in the past
– Cannot pass lender affordability tests
What Do I Do Once I’ve Applied For A Help To Buy Mortgage?
Get in touch with a specialist conveyancing solicitor or a licensed conveyancer to help you complete the purchase of your home. A specialist property lawyer will be able to make purchasing your new home as stress-free as possible. At Roskell Davies, we are proud of our conveyancing expertise and would be happy to help you – contact us or for more information.
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