By Frances Traynor
11th December 2017
Written by Lorraine Imhoff
Many would-be home-buyers are missing out on mortgages under the government's Help to Buy guarantee scheme because they think it doesn't apply to them. Don't be one of them!
The Help to Buy scheme has been greatly expanded and can now provide help to far more buyers than previously. So if you thought that you wouldn't be able to buy a home because you would have to borrow more than 80% of the price, think again.
Are you ready to get a conveyancing quote?
There is no obligation, and you will see your quote online rather than having to wait for an email or call. We offer a ‘no move, no fee’ guarantee should you instruct through Homeward Legal.
The Help to Buy mortgage guarantee scheme is quite straightforward in operation. Provided that you have available a cash deposit of at least 5% of the value of a property you can apply for a mortgage for the remainder.
While many lenders will not lend more that 80% of the value of a property, with a Help to Buy mortgage you can borrow up to 95%. The mortgage company then gets a guarantee from the government which covers the amount by which the loan exceeds 80% of the price.
Buyers do not have to pay any fee for this guarantee, nor do they have to pay any additional fees just because they are applying under the Help to Buy scheme.
You will need to meet the lenders usual income checks and other lending criteria, and show that you have not had any previous financial difficulties. Joint incomes can be considered in the usual way.
You should bear in mind that in addition to your cash deposit you will need to pay the land registry fees, any Stamp Duty, legal and survey fees out of your own resources. Legal fees will be no higher than for any other purchase, and you can easily get a quote for these here.
Your solicitor will be happy to explain the details of the scheme to you. It is definitely worth instructing a solicitor who has plenty of previous experience with Help to Buy purchases, and we have found you the best around – and at remarkably low cost.
Don't forget our price guarantee – what we quote is what you pay. Unlike some firms with us there are no hidden extras to come as a nasty surprise on completion.
Get a free quote today or call us on 0800 038 6699 for help with your help-to-buy purchase.