The Help to buy mortgage scheme was first announced in the Government Budget of 2013. Essentially designed to help any person who is finding purchasing their first home difficult. Two of the Main elements to bare in mind are that this scheme is restricted to the purchase of new build homes and that the purchaser is only required to raise 5% of the value of the property as a deposit.
Under the scheme the Government will put forward a further “interest-only” loan of 20% of the value of the property which combined with your own percentage can enable you to qualify for the more attractive mortgage rates offered by high street mortgage lenders.
The governments 20% loan has many borrowers rubbing their hands with joy as its extremely competitive. The first 5 years are interest free and in year 6 you will be charged 1.75% which will climb at a rate of 1% plus inflation (retail price index measured) for every subsequent year. This enables informed 1st time lenders to take advantage of low rate mortgage loans and benefit from the government scheme. We specialize in independent qualified mortgage advice and can present you with all the pro’s and the con’s to the mortgage minefield from an independent and unbiased position. Our advice can save you time, money and worry so contact us today through our contact form on the right.