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Help To Buy now at Clutton Homes

We are very pleased to announce that we can now offer the Help to Buy scheme on all of our properties.

If you’re a first time buyer we know how difficult it is to raise a large deposit to purchase your first home. With Help to Buy you’ll need to save just 5% deposit to get a mortgage, so you could purchase your first home sooner than you thought.

If you’re an existing homeowner, you can use Help to Buy to trade up to a bigger property - even if you have limited equity in your current home, because you only need 5% deposit to move.

With Help to Buy, you can buy a new home from us with just 5% deposit - whether you're a first time buyer or you're moving on from your existing home. 

There are currently two Help to Buy schemes – 'Equity Loan' and 'Mortgage Guarantee'.  Both require a 5% deposit and are available to first time buyers and existing homeowners. Beyond that, the schemes are very different and here’s how:

 

Help to Buy Equity Loan

 

Available on new build homes up to £600,000 in England.

The Government will lend you up to 20% of the property value through an equity loan which can be repaid at any time during the loan term or on the sale of your home.

In England and Wales, you won’t be charged any loan fees for the first 5 years of owning your home.  

Help to Buy is available to both first time buyers and existing home owners alike and means you can buy a new home with a low 5% deposit.

 

Help to Buy Mortgage Guarantee

 

Available on new build homes and existing homes up to £600,000 in England

You’ll need to secure up to a 95% mortgage from a participating mortgage lender.

The lender can now offer this loan-to-value mortgage as the Government will provide them with a guarantee of up to 15% of the property value.

 

Q) What is Help to Buy? 

A) Help to Buy is a Government-backed scheme which helps first time buyers and existing home owners purchase a home with as little as 5% deposit. There are two ways to purchase a property with Help to Buy – either with an 'Equity Loan' or 'Mortgage Guarantee'.

 

Q) Is Help to Buy just for first-time buyers? 

A) Help to Buy is available for both first-time buyers and existing homeowners.

 

Q) How does the 20% Equity Loan work? 

A) Help to Buy Equity Loan provides buyers with an equity loan of up to 20% of the property value which can be repaid at any time within the first 25 years (or the terms of mortgage), or alternatively on the sale of the property.

In England and Wales, you won’t be charged any loan fees for the first 5 years of owning your home. In the 6th year, you’ll be charged a fee of 1.75% of the loan’s value. After this, the fee will increase every year. The increase is worked out by using the Retail Prices Index plus 1%.  Note that fees don’t count towards paying back the equity loan.

With Help to Buy Equity Loan, buyers only need up to a 75% mortgage; but with Help to Buy Mortgage Guarantee, buyers will need up to a 95% mortgage.

 

Q) Why has Help to Buy been set up? 

A) The Government is continuing its pledge to help more people across the UK to become home owners.

 

Q) Am I able to buy a house under the new scheme?

A) If you can raise a 5% deposit you will be able to buy a new home under Help to Buy.

 

Q) When did the scheme start?

A) Help to Buy Equity Loan came into operation on 1 April 2013 in England, 30th September 2013 in Scotland and 25th November 2013 in Wales. Help to Buy Mortgage Guarantee is available from 8 October 2013 in the UK.

 

Q) What is the maximum property purchase price?

A) 
The maximum home purchase price with Help to Buy Equity Loan is £600,000 in England, £400,000 in Scotland and £300,000 in Wales. The maximum home purchase price with Help to Buy Mortgage Guarantee is £600,000 in England, Scotland and Wales.

 

Q) Can I use Help to Buy for a buy-to-let property?

A) No, the scheme is only available on properties that will be occupied by the person or persons who have taken out the mortgage.

 

Q) Am I able to get an interest only mortgage using Help to Buy?

A) No, the scheme is only available in relation to capital repayment mortgages.

 

Find out more now by clicking on HERE now 

 

 

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