Help to Buy
We provide fee free mortgage advice, meaning we don't charge our clients for using our services.
We offer a comprehensive range of products from across the market but not deals that you can only obtain from going direct to the lender.
We typically help a variety of people including;
Employed | Self-Employed | Directors
Adverse Credit | Help to Buy | SPV Ltd Companies
Help to Buy Mortgages Explained
Help to Buy is a government scheme that has been setup to give first-time buyers a helping hand, under Help to Buy buyers only need to provide 5% of a home’s value as a deposit.
The government boosts this 5% deposit with an equity loan (typically 20%), meaning that to purchase a property the buyer only needs to secure a mortgage for 75% of the purchase price.
For example on a £200,000 property a first time buyer would need a £10,000 deposit, and the government would typically provide a £40,000 equity loan. This means that a mortgage would only be required on £150,000 of the property.
For first time buyers purchasing in London the government equity loan amount available is increased to 40% to reflect the higher property prices.
The governments equity loan takes a percentage stake in the property, rather than a traditional loan. Therefore when the time comes to sell the property you repay whatever the stake represents at that point rather, regardless if its higher or lower than the amount original amount borrowed.
Using the earlier example where you purchased a house for £200,000 with a £40,000 equity stake; if you sell it for £250,000 you will be required to repay 20% of £250,000 (£50,000). The same is true if the sale amount is £150,000, you will repay 20% (£30,000).