The chancellor continues to help house-builders and first time buyers alike. Not just for new homes only, there’s £12 billion to increase the access for those who are unable to save a large deposit. Those who qualify no longer have to have a household income of less than £60,000. A deposit of at least 5% is required – the higher your deposit, the better.
Help to Buy is an expansion of the existing scheme (FirstBuy) whereby if you can come up with 5% deposit and secure a 75% mortgage then you can apply an interest-free (for the first five years) equity loan for up to 20% of the value of the property. This scheme starts on 1st April 2013 and will run for the remainder of the decade. Available through local HomeBuy agents. Email Robert@advocofinancial.com to find out who your local HomeBuy Agent is and their contact details. If you have a 5% deposit saved, see if you qualify for a Help to Buy shared equity mortgage by asking our mortgage advisors.
Help to Buy part 2 started in October 2013 and the Government will guarantee to cover some of the losses incurred by the mortgage lenders in the event of a repossession thereby making lenders more willing to lend and making first time buyer mortgages more accessible. You still need a 5% deposit at least and to secure a mortgage. This appears to be a development of the NewBuy scheme.