Low Cost Home Ownership

Help To Buy Equity Loan

How does it work?

With a Help to Buy: equity loan the Government lends you up to 20% of the cost of your new-build home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest. You won’t be charged loan fees on the 20% loan for the first five years of owning your home.

Example: for a home with a £200,000 price tag If the home in the example above sold for £210,000, you’d get £168,000 (80%, from your mortgage and the cash deposit) and you’d pay back £42,000 on the loan (20%). You’d need to pay off your mortgage with your share of the money.

 

 

London Help to Buy equity loan To reflect the current property market in London, from early 2016 the government will increase the upper limit for the equity loan it gives new buyers within Greater London from 20% to 40%.

With London Help to Buy equity loan:

  • you’ll need to contribute at least 5% of the property price as a deposit;
  • the government will give you a loan for up to 40% of the price;
  • you’ll need a mortgage of up to 55% to cover the rest. - See more here

Who is eligible?

Equity loans are available to first time buyers as well as homeowners looking to move. The home you want to buy must be newly built with a price tag of up to £600,000. You won’t be able to sublet this home or enter a part exchange deal on your old home. You must not own any other property at the time you buy your new home with a Help to Buy equity loan.

 

Mortgage Guarantee

How does it work?

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.

Example: for a home with a £200,000 price tag

 

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 mustn’t 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 can’t let out the property to somebody else your mortgage can be taken out by an individual or individuals but not by a company you cannot use the mortgage guarantee scheme with any other Government scheme such as Help to Buy: equity loan or shared ownership. Your deposit for the property can’t come from a government scheme either you don’t have to pay any additional fee to Government to get a Help to Buy supported mortgage The Help to Buy: mortgage guarantee scheme will run for three years until 31 December 2016.

 

Shared ownership

Shared ownership schemes (part buy/part rent) are provided through housing associations. You buy a share of your home (between 25% and 75% of the home’s value) and pay rent on the remaining share. You can buy bigger shares at a later stage when you can afford to. With shared ownership you can buy a newly built home or an existing one through resale programmes from housing associations. You’ll need to take out a mortgage to pay for your share of the home’s purchase price, or fund this through your savings. Shared ownership properties are always leasehold and you can buy a home this way if: Your household earns £60,000 a year or less. In London this is higher: £66,000 a year for a home with one or two bedrooms, or £80,000 for family homes of three bedrooms or more You’re a first-time buyer (or you used to own a home, but can’t afford to buy one now) If you rent a council or housing association property, then you will receive priority for buying a home through shared ownership. The same priority is given to Armed Forces personnel. Local authorities with shared ownership home building programmes may have further priority groups, based on local housing needs, such as people already living or working in the area.

 

Right to Buy

If you are a council tenant with a least five years’ tenancy you might be eligible to buy your home at a significant discount. Some housing association tenants may also be eligible.

 

NewBuy

NewBuy lets you buy a new-build home with a purchase price of up to £500,000 with a deposit of only 5%. To be eligible for NewBuy, your new home must be: your main home (you can’t use NewBuy to buy a second home or a buy-to-let property) owned fully by you (you can’t use NewBuy for shared ownership or Help to Buy: equity loan purchases) built by a builder taking part in the scheme You don’t have to be a first-time buyer and there’s no limit on your level of income. But you can’t use NewBuy with any other publicly funded mortgage scheme. How to apply You can apply through a developer taking part in the scheme or an approved mortgage lender. The lender will check that you can afford to repay your mortgage, as they would for any other type of home purchase.

ANA Mortgages is a trading style of A.N.A. Associated Ltd which is an appointed representative of Ingard Financial Ltd, which is authorised and regulated by the Financial Conduct Authority (450731). Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. There may be occasions where we may charge a fee, which may depend upon your circumstances. In these situations we will inform you at an early stage, the fee being no more than £250, and usually paid on Mortgage Offer. Please call to discuss your requirements further.

 

Occasionally we might have links to other external websites on this site. Please note that we are not responsible for the accuracy or content of any sites linked from our own site,

nor for the way in which those linked sites might handle any information that you choose to provide them with. We cannot be responsible or liable for any direct or indirect loss,

 however caused by your use of these linked sites.

 

Copyright anamortgages.co.uk 2017. All rights reserved.

Powered by Speedster IT

  • Mortgages in Ealing
  • Mortgage Broker in London
  • Mortgages in Home Counties
  • Mortgage Broker in Ealing
  • Remortgage in London
  • Home Insurance in Brentford