When considering a mortgage it can be a daunting experience as a first time buyer, or equally an existing home owner trying to find that right “deal”.
The current market place generally requires a deposit of 10%, which can seem unachievable to save for with every day financial commitments.
There are two government back mortgages on the market:-
Help to Buy Equity Loan
This is designed for first time buyers and home-owners on new build homes up to a maximum of £600,000.00. If you qualify for this you can get up to 20% (40% if you live in London) of the full purchase price of a new build property, you then need to only find a 5% deposit and secure a 75% mortgage or (55% if buying in London).
These loans are interest free for the first 5 years and they will be available in England until 2021. It must be your only residence and you cannot own or part-own another property.
The other is:-
Mortgage Guarantee Scheme
This mortgage makes it possible to buy a pre-owned or new build property.
This is available again for properties up to £600,000.00 and a 5% deposit is required. You must occupy this property and it must be your only property.
This mortgage helps to support buyers who are struggling to raise a sizeable deposit; this agreement is between the government and the lender and not the buyer. As the buyer you will barely notice the difference between this and a traditional mortgage and as long as you meet the criteria in terms of credit score and loan-to-income ratios you would be eligible. This mortgage is only available on a repayment basis.
For further advice on the conveyancing process please contact the Residential Property team at any of our offices.