Help to Buy has now been extended to make it possible to purchase any property under £600,000, be it a new build or pre-owned home, with as little as a 5% deposit.
The Mortgage Guarantee Scheme was launched in October and the process of applying and repaying the mortgage is the same as it would be for a standard mortgage, there really is very little difference for the buyer.
The scheme is intended to increase the availability of mortgages at competitive interest rates for buyers with a minimum of 5% deposit. The government are going to make this 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.
Below is a list of criteria for the scheme:
- Available for both existing home owners and first-time buyers.
- Buyers need a minimum of a 5% deposit.
- Available on all previously owned and new build properties.
- Purchase price up to the value of £600,000.
- Must be your only property.
- Available for properties in the UK.
- Borrowing from a participating mortgage lenders.
The scheme is scheduled to run for three years and its effectiveness is going to be monitored be the government.
This scheme has obvious benefits to house buyers but the knock on affect helps house sellers as the increase in available mortgages and demand within the market should have a positive affect on house prices.
If you have any further questions about the scheme please feel free to contact us.