A mortgage supported by the Help to Buy: Mortgage Guarantee scheme works in exactly the same way as any other mortgage except that under the scheme the Government offers lenders the option to purchase a guarantee on mortgage loans.
Because of this support, lenders taking part are able to offer home buyers more high-loan-to-value mortgages (80-95%).
You will still be fully responsible for your mortgage repayments. So if you have a 5% deposit, you will need to take out and pay back a 95% mortgage.
Who is eligible?
A mortgage under the Help to Buy: Mortgage Guarantee scheme works like any other mortgage. Your lender will check that you can afford the mortgage and that you do not have a history of payment difficulties. To qualify for a mortgage supported by Help to Buy: Mortgage Guarantee: the property you are purchasing could be an existing or new-build home in the UK, priced up to £600,000 you must not own any other property anywhere in the world at the time you buy your home supported by the Help to Buy: Mortgage Guarantee scheme your mortgage must be a repayment one, not interest only. Offset and guarantor mortgages are also excluded from the scheme you cannot let out the property to somebody else your mortgage can be taken out by an individual or individuals but not by a company other than using a Help to Buy: ISA to boost your deposit, you cannot use the Help to Buy: Mortgage Guarantee scheme with any other government home-buying scheme such as Help to Buy: Equity Loan, Shared Ownership or Right to Buy. Your deposit for the property cannot come from a government scheme either you don’t have to pay any additional fee to the Government to get a Help to Buy supported mortgage the size of the mortgage you apply for must be less than 4.5 times your income.
For more information, call our mortgage experts on 01233 512012. Each of our advisers have at least 18 years experience as a mortgage broker.