Help to Buy Mortgage Advice in Newcastle Across All Schemes
Following the credit crunch, the government introduced the Help to Buy schemes. These schemes offer a helping hand to buyers struggling to get onto the property ladder. Each scheme works differently; some offer a deposit contribution, whereas others allow applicants to co-own a property. In 2021, the government launched OwnYourHome, a platform that brought all of the current Help to Buy schemes together and introduced a couple more new ones for First Time Buyers.
As a Mortgage Broker in Newcastle, we can help you through your Help to Buy journey and talk you through all of the schemes that are currently available. There are many different schemes and some of them may be more beneficial to you than others.
Help to Buy Equity Loan Scheme
Amongst the Help to Buy and OwnYourHome schemes, the Help to Buy Equity Loan is usually the most popular. This scheme helps First Time Buyers make up a total of a 25% mortgage deposit on a new build property.
First of all, you will need a minimum of a 5% deposit, although, if you want to increase this amount, you can only go up to a maximum of 20%. You could argue that if you have a 20% deposit, it may be more beneficial to go down the traditional route of applying for a mortgage. The way that this works is that the government loan you the extra portion of the deposit to make up a 25% total. Whatever they loan you, will need to paid back. This total will be interest-free within the first five years of owning the property, and if you have not paid it back within the timeframe, you will begin receiving interest on the total that is left.
How do you qualify for the Help to Buy scheme?
Before you are able to access the Help to Buy Equity Loan, you will need to pass the scheme’s criteria.
You can only use the scheme on a new-build property up to a maximum value of £600k. You will also have to be First Time Buyer in Newcastle too.
Part of the terms and conditions specify that you should not own any other property i.e. you cannot buy a second home with the help of this scheme. Part-exchange and sub-letting are also not allowed.
Help to Buy Shared Ownership
For the Help to Buy Shared Ownership scheme, you’ll usually be able to purchase 25% or as much as 75% of a home and pay rent on the rest. In some cases, you may be allowed to purchase as little as 10%. If you can’t quite afford to take on a 100% mortgage, this could be the scheme for you in Newcastle.
As a Mortgage Broker in Newcastle that regularly deals with Shared Ownership applicants, we usually see that applicants take out a bigger share further down the line. This is normally once the homeowner is settled in, gained an extra source of income or received a pay increase, etc.
As your expert Mortgage Broker in Newcastle, we are able to provide Help to Buy Mortgage Advice across all schemes. Find out more information about Help to Buy schemes available to you and the most common Help to Buy mortgage scenarios below.
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