In April 2013, the first phase of the Help to Buy scheme in England began, enabling buyers of newly built homes to obtain a 20% equity loan from the government on top of their 5% deposit. There are similar schemes operating in Scotland and Wales.
On 7th October 2013, the Government announced that phase two is now being launched. The Mortgage Guarantee Scheme allows first-time buyers and existing owners with 5% deposit the opportunity to buy a new or second hand property worth up to £600,000.
Under the second phase, buyers only need to provide a small deposit, with the government offering a guarantee of 15% of the loan to the lender - for a fee - to encourage the bank or building society to offer the loan.
Our Conveyancing Solicitors will be
happy to assist with your Help to Buy purchase and below is a brief
summary of the options available to enable you to choose the most suited to your circumstances:
Help to Buy: Phase Two
15% of the purchase price will be guaranteed by the Government, enabling access to cheaper mortgage deals.
Borrowers will need to find at least 5% deposit and must take out a mortgage to cover the remaining 75% of the purchase price, which can be up to £600,000.