Buying a home is a costly and daunting affair. For some in the UK, owning a home may have felt like a prospect that was never to be. With the help of the government scheme known as ‘Help to Buy,’ there is a way for many who may have never been able to acquire a home to purchase of the property. So what is exactly is ‘Help to Buy’ and who is it designed for?
There are two parts to ‘Help to Buy’: the Mortgage Loan and the Equity Loan. Each is designed to help people buy a home whether it be first time home buyers or current homeowners looking for a new place.
The Mortgage Guarantee
In the past, mortgages seemed almost impossible to obtain because lenders want large deposits before approval. Even though many potential homebuyers could afford a monthly mortgage payment they struggled to save back enough for a deposit. With the Mortgage Guarantee the government makes it possible to be approved for a mortgage with only a 5% deposit. These mortgages can be for any home purchased for under £600,000.
The Equity Loan
The Equity Loan Scheme is designed for those who want to move into a new build home. Once again this scheme is made for any potential homebuyer not just first time homeowners. The benefits of this plan are that the government will allow you to borrow 20% needed for a new build home as long as you have a 5% deposit. The buyer’s responsibility will be to get a 75% mortgage and must live in the home as their only property.
If you have long felt like purchasing a home was a dream out of your reach then it is time to do some research into the ‘Help to Buy’ scheme. For more information and help getting a mortgage for your new home contact your Doorsteps today.