Help to buy for many more in 2014

A chance for many more to

get on the housing ladder.

Help to Buy.

Owning your own home or moving up the ladder is one of life’s ‘big goals’ for most people, one that until recently, has been out of reach especially for first time buyers. Thankfully the Government has stepped in to help.

Phase 2 of the Government’s Help to Buy scheme has just been announced, and is designed to allow more people to secure a mortgage, because it reduces the level of deposit required to just 5% of the purchase price. If you have the 5% saved and are looking to buy or are in a position to help one of your children with the 5% deposit, this is a great opportunity, one we would urge you to consider.

There are two parts to the Help to Buy scheme and one of which could be available to you:

Help to Buy: Equity Loan For New Homes Only Up To £600,000

Buyers will need a minimum 5% deposit to qualify and the Government will lend the balance of the deposit by way of an equity loan of up to 20% of the value of the property. This loan can be repaid at any stage or on the sale of the property.

The buyer will need to secure a 75% mortgage through a bank or building society.

It is open to buyers looking to purchase their main residence but is not available for the purchase of a second home, investment purchase or if they wish to remain party to another mortgage. This has been available from the 1st April 2013 and will run for 3 years.

Help to Buy 2: Mortgage Guarantee For New & Second Hand Homes Up To £600,000

Phase 2 is what all the recent press has been about. It is available now to first time and existing homeowners, for purchases that complete after 1st January 2014.

The Government guarantee scheme encourages lenders to offer better access to low-deposit mortgages, enabling buyers with as little as 5% deposit to get onto or move up the property ladder by giving access to 90-95% mortgages for a purchase or re-mortgage.

Help to Buy 2 launches fully from January 2014 and will also run for a 3 year period.

This is really excellent news and is probably the most tangible assistance the Government could have offered to help many get on the property ladder. Curchods mortgage advisors are on hand to help.

Curchods Mortgage Services

01483 479070