Getting together a 10% minimum deposit to buy a home can be quite a challenge, especially as the cost of living is continually on the rise. Fortunately, help is at hand as the Government have extended the Help to Buy initiative to 2020 to enable contractors to purchase with just a 5% deposit.

The 'Help to Buy' scheme has been launched as two separate phases, the Equity Loan available on new builds only and the Mortgage Guarantee that covers all builds. Read on to see how you can qualify…

How to qualify for 'Help to Buy' - Equity Loan

  • Equity Loans are open to both first time buyers and home movers on new build homes in England
  • Loans are available up to a value of £600,000
  • A 5% deposit of the  property price is required by you
  • The Government will give you a loan for up to 20% of the purchase price
  • You will need to secure a mortgage to cover the remaining 75%
  • No fees will be applied for the first 5 years of owning your home. In the sixth year, a charge of 1.75% of the loans value will be applied. Beyond this the fees will increase each year in line with the Retail Price Index (RPI)
  • The Government stipulates that you would not be eligible if you are already a home owner, and the property cannot be used as a buy to let
  • To apply for the loan you will need to contact a Help to Buy agent

 

Help to Buy

How to qualify for 'Help to Buy' – Mortgage Guarantee

  • Mortgage Guarantee loans are available on purchases and re-mortgages of new-build and older properties up to £600,000
  • Mortgage Guarantee loans require you to secure a 95% mortgage from a lender
  • You only need to raise a 5% deposit
  • The Government will guarantee 15% of the purchase price if you default on your mortgage
  • There is no loan to pay back with this scheme, you simply need to cover your mortgage repayments
  • You are eligible as long as the property is not to be your second home, and is not to be sub-let
  • This loan is also available on remortgages so contractors on a Standard Variable Rate (SVR) could make great savings by switching to a lower rate on this scheme

95% Mortgage

Secure your 'Help to Buy' contractor mortgage

The great news is that contractor friendly lenders have signed up to the Help to Buy scheme so we can secure your 'Help to Buy' mortgage based on a multiple of your annualised contract rate alone. To find out more about how we arrange your mortgage, visit our contractor mortgages page.