Help to buy
If you are struggling to afford a deposit larger than 5% you may be able to take advantage of the Government’s help to buy scheme. This scheme has been designed to help people with low deposits get onto the property ladder. With our knowledge of the market, we are ideally placed to provide advice and guidance on this and other schemes available to help first-time buyers.
If you are a first-time buyer able to contribute a deposit of at least 5% and want to buy a new build property, you may qualify for the Government’s help-to-buy equity loan scheme. The Government will loan up to 20% of the purchase price and this proportion of the loan will be interest-free for five years.
For the remaining 75% you will need a mortgage, but a mortgage at 75% loan to value means more competitive interest rates become available to you. After the five years you will begin to pay interest on the 20% loan from the Government, or you have the option of remortgaging to buy out the 20% share for yourself. This is a common course of action, depending on personal circumstances at that time.
You will need to meet the following conditions to be eligible for the help-to-buy loan scheme:
• The property must be a new build property
• A minimum of 5% deposit is required
• The value of the property you wish to purchase cannot exceed £600,000
• The property you are buying must be the only property you own
If you are considering this scheme, please get in touch. Aspire Financial Services has the experience to advise you and guide you in the purchase of your first home. Book a free 30-minute consultation now.