From October 2013, Help to Buy has been extended to make it possible to buy any property under £600,000 - be it a new build or pre-owned home - with just a 5% deposit. Help to buy operates in two ways. Primarily there is the Mortgage Guarantee scheme which is now available on both pre-owned and new builds with a standard mortgage of up to 95% of the purchase price. The Mortgage Guarantee scheme works very much in the same way as any standard mortgage, the process of applying and repaying the mortgage is the same. There is very little difference for the buyer other than the availability of more competitive interest rates for those with a minimum of 5% deposit, hopefully. Lenders will need to make suitable mortgage products available and due to the short notice of the announcement products may not be available.
The government makes this scheme possible by guaranteeing repayment of the mortgage to the lender, this will be dealt with behind the scenes by participating lenders. There will be no additional paperwork or charges for the buyer. But if you need help with the paperwork of setting up your mortgage and are looking for the best options Enable’s IFAs are here to help.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.
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