Help to Buy Mortgage Advice in Sunderland
Buy your first home with the Help to Buy scheme and expert Mortgage Advice in Sunderland
Buying your first home can be a bit of a struggle. Especially if you’re juggling rent as well as saving for a deposit.
However, the Help to Buy scheme which was first announced in 2013 was designed to help anyone who’s struggling to save for a deposit for their first home or to help second-time buyers move up the property ladder due to limited equity.
How does Help to Buy work?
There are three main Help to Buy schemes in England, created by the government to help the purchase of homes.
Help to Buy Equity Loan
Help to Buy ISA
Help to Buy Shared Ownership
As a Mortgage Broker in Sunderland, we have great experience in the Help to Buy schemes so our free, no-obligation consultation will work through each option with you to determine what is the best scheme for you based on your own individual circumstances.
Help to Buy – Equity Loan
This is the most popular of the Help to Buy schemes. The government will lend you up to 20% of the cost of your new build home from approved developers and then will take a share in any increase (or decrease) of the property’s value. To participate in this scheme, the property must be your only property and your permanent residence.
You will still need to place a deposit of at least 5% and then be able to obtain a mortgage of up to 75% to make up the rest. With this scheme, you won’t be charged any interest on the 20% loan for the first five years, however, interest will incur after 5 years.
When you sell the property, you will then repay a share of any capital appreciation that has occurred.
Help to Buy – ISA
The Help to Buy ISA was designed to help boost your deposit when buying your first home as a First Time Buyer.
In order to qualify for this scheme, you must be a First Time Buyer and not own property anywhere in the world.
The savings scheme is just like a regular ISA product which is tax-free but with the benefit that the Help to Buy ISA gives you the added bonus of government contributions.
The Help to Buy ISA works by the government topping up any contributions you make to it by 25%. So for every £200 you save, the government will add £50 to the maximum of £3000.
£1,600 is the minimum amount you need to save to qualify for the bonus (which means the government contribution will be £400) and you can start off your Help to Buy ISA with £1,000.
The Help to Buy ISA is available to each BUYER not home so if you’re purchasing a property with a friend or partner then you’ll be able to get up to £6,000 towards your deposit by each saving in a Help to Buy ISA.
Book a free, no-obligation consultation today with Mortgage Brokers in Sunderland, to find out if you qualify for a Help to Buy ISA and to find a suitable mortgage deal to get your first home purchased.
Help to Buy Shared Ownership
If you’re ready to purchase your first home but you can’t quite afford 100% of the mortgage then a shared ownership option may be for you.
The Help to Buy shared ownership scheme offers the chance to buy a share of your home between 25% and 75% of the home’s value and allows you to pay rent on the remaining share. You can also buy more shares in the future should you want to.
With Help to Buy Shared ownership, you can buy newly build homes or ones available through an existing resale program with housing associations.
Interested in the Help to Buy Scheme?
If you’re looking to purchase a newly built home in Sunderland or surrounding areas then contact us today for a free, no-obligation consultation where we can work through your options from the budget requirements to the application process to finding you the best deal on your mortgage.