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.
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.
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.
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.
Our trusted mortgage advice service goes beyond the mortgage. We want to make sure that you are prepared when taking on your Help to Buy mortgage journey. This means that we will talk you through all of your options to help you select a scheme that is not only right for you but also matches your personal and financial situation.
With the help of a Mortgage Advisor in Newcastle, the Help to Buy mortgage process can be made stress-free and simpler. With our combined knowledge of lending criteria and the currently available schemes, we will be able to show you the difference it can make to have an expert on your side.
Book a free mortgage appointment with the team and we can discuss your Help to Buy mortgage options. Upon starting your process, we will look at your affordability, your credit score and see what sort of deals you may be able to access. Your Mortgage Advisor in Newcastle will run through these factors with you.
Remember, you will only need a minimum of a 5% deposit for the Help to Buy Equity Loan and for the Shared Ownership, it will depend on the share that you are planning to take out.
There are also other schemes to be aware of, such as the 95% mortgage guarantee scheme, Lifetime ISA and the First Homes scheme. These come under the OwnYourHome umbrella. Like Help to Buy, you will need to qualify for these schemes before you can access them. Some may not be available to you depending on your personal and financial situation.
Remember that these schemes were designed to help struggling First Time Buyers get onto the property ladder, not homebuyers who can afford the traditional approach to getting a mortgage.
Our team can talk you through these schemes if you would like and talk you through which options could benefit you.
Find out more information about the Help to Buy schemes available to you at Gov.uk
As a Mortgage Broker in Newcastle with 20+ years of experience, we are able to offer your expert Help to Buy advice. We have knowledge of the schemes available and will be able to work out which ones are best for you and your personal and financial situation.
We want you to receive the best service possible, therefore we will make sure that we are on hand to answer all of your mortgage questions. Every customer at Newcastlemoneyman will experience a great level of communication and responsiveness between themselves and their case manager and Mortgage Advisor in Newcastle.
If you are looking for Help to Buy Mortgage Advice in Newcastle, you can easily book a free mortgage appointment online! Follow our book online process and select a date and time that best suits you. We have appointments available early in the morning and late in the evening, 7 days a week. Working to this schedule allows you to get in touch at a time that best suits you and your personal and working life.
You will need to have around 5% of the price the new build property in Newcastle is on sale for. The government will then loan (it’s important to remember that this is what this is and you’ll need to pay it back) you up to 20% to the properties value.
Your free mortgage consultation in Newcastle will last approximately about one hour. We will then recommend a mortgage for you, where you have no obligation for you to proceed and then it is your choice whether or not you wish to proceed with the mortgage.
As your Mortgage broker in Newcastle, we will carry out a Fact Find with you to establish your personal & financial needs before we recommend the most suitable mortgage for your circumstances. A credit check will then be required for you to obtain an Agreement in Principle. Once you have provided all the relevant documentation and a valuation of the property has been undertaken, you can then be issued a formal mortgage offer.
To avoid possible disappointment, we would highly suggest that you obtain an Agreement in Principle before you begin viewing a potential new home in Newcastle. At the very latest you should try to obtain one prior to making any offers to help with your bargaining position.
The standard for how long an Agreement in Principle will last is between 30 and 90 days, depending on the lender used. If your Agreement in Principle expires it can be easily refreshed with the help of your advisor.
You may have the option to get a second mortgage on your home in Newcastle for something like debt consolidation or home improvements. It may also be possible for you to take out a mortgage on a second property if you’re looking to potentially use it for yourself, a family member, a holiday home or a Buy-to-Let. If you require the help of a Specialist Mortgage Advisor in Newcastle, we are more than happy to have a chat about your options for a second mortgage.
If you have had credit problems you may still have some options to get a mortgage but this require extra steps, such as being asked to put down a higher deposit than usual, potentially 15% of the property purchase price. If you are having difficulty in trying to obtain a mortgage because of past credit problems, please feel free to get in touch with your Mortgage Broker in Newcastle and we will see how we are able to help!
Once you have submitted at least one year’s accounts, you will be able to begin your mortgage process in Newcastle. Most lenders will use a sum of salary plus dividend to calculate the maximum mortgage, whereas others are known to use your net profit.
You’ll find that the lenders will usually want to see three payslips from an employee to prove their income and the latest 2 years’ accounts for Self-Employed applicants. You will also need to provide the lender with proof of ID, address and 3 months’ bank statements before they will accept you for a mortgage in Newcastle.
Our free consultation will usually last around an hour or so. Our advisors are able to turn round an agreement in principle within 24 hours of your appointment. A formal mortgage offer will on average take about three weeks. Before you know it you will have your mortgage secured in Newcastle.
Give us a call and a Mortgage Advisor in Newcastle will recommend the best Help to Buy scheme based on personal circumstances.
Enjoy finding your dream home in Newcastle
Make an offer on the property and once accepted, we will progress your mortgage application.
We will be here to answer all of your mortgage questions right through till you get your keys.
A telephone call where we can take some initial details and find out about your plan of action.
Enjoy finding a property!
Make an offer on the property you set your heart on – we’ll finalise your figures and help you to get a good deal.
Our mortgage recommendation. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.
