Cast your mind back to the “good old days” when the housing market was flourishing. People often reminisce about the ease at which they could lend money and finance their property purchases. The limits on the number of mortgages you could have were non-existent and lending money didn’t seem to be a problem – even for those who didn’t have the best of credit scores. When you think about the housing market at present, what enters your mind? Most people would say all they see is doom and gloom, but it’s not all that bad, and the Help To Buy scheme is a great example of this.
A very common questions asked is "Am I eligible for a Help To Buy Mortgage as a Contractor?" the simple answer is yes, but you definately need a specialist broker such as us to help you through this application process, trying to go it alone may not be the best course of action for you.
What is the Help to Buy Scheme?
If you have never heard of the Help to Buy scheme, this is something that was set up by the UK Government in order to help first-time buyers secure their first home. Under this structure, the Government will lend you up to 20 per cent of the cost of your newly built home. This means that you are only going to need a deposit of 5 per cent, and then you only need to secure a 75 per cent mortgage, rather than a 95 per cent one. On the loan that the Government has provided, you won’t be charged any fees for the first five years.
So, for example, let’s say you wanted to purchase a house at £210,000:
- £42,000 of this (20 per cent) would come from the government loan.
- The remaining £168,000 would be made up of your deposit and the loan from your lender.
This makes it a lot easier for you to purchase a property because you won’t need such a big deposit and you will also find it easier to secure a loan, as you will be borrowing less from a mortgage lender.
According to the most recent figures from the Ministry of Housing, Communities and Local Government, 158,883 properties have been purchased using this scheme from April 2013 until December 2017.
London Help To Buy – Further Help For Those Buying A House In London
If you are based in London or you are looking to purchase a property here, the benefits of this scheme are further felt. In 2016, the UK Government increased the upper limit for their equity loan. This means that new homebuyers within Greater London can borrow up to 40 per cent rather than 20 per cent.
Contact Us Today To See If You Are Eligible For The Help-To-Buy Scheme
If you are ready to find out what options are available to you, or you have some general queries about the help to buy process, please do not hesitate to send us an email or give us a call. We will provide you with a free, no-obligation consultation over the telephone. You’ve got nothing to lose!