This Government scheme is no longer available

help to buy mortgage broker london

The Help to Buy Scheme in London has been created by the Government to help people with low deposits buy their own home. With as little as a 5%
deposit, The Help to Buy Scheme makes it possible to buy a new-build or existing home priced up to £600,000.

New Build Equity Scheme. How does it work?

The Government lends you up to 20% of the cost of your new-build home, and so you will only need to find a deposit of 5%. The mortgage lender will lend you up 75% of the rest.

For the first 5 years of owning your home you won’t be charged loan fees on the 20% Government loan

Who is eligible?

Not only are equity loans available to first time buyers they are also available to homeowners looking to move. With a price tag of up to £600,000, the home you want to buy must be newly built.

Some of the qualifications for these loans are, 1, you won’t be able to sublet this home or enter a part exchange deal on your old home. 2, You must not own any other property at the time you buy your new home with a Help to Buy equity loan.

How to apply

You need to approach a Government Help to Buy agent who have been appointed to run the scheme. From providing general information about the scheme to dealing with your application, they can guide you through your purchase.

You can use a mortgage broker to provide the mortgage lending criteria, affordability and mortgage processing.

Help to Buy Mortgage Guarantee Scheme

How does it work?

The mortgage guarantee scheme is an up to 95% loan from a standard mortgage lender participating in the scheme.

The lender is able to offer 95% at what would otherwise be greater risk to itself because the Government under this scheme guarantees the lender has little or no risk.

Because of this support, lenders taking part are able to offer home buyers more high-loan-to-value mortgages (80-95%).

Interest rates at 95% are much higher than when putting down a larger deposit

Example: for a home with a £300,000 price tag

Who is eligible?

Below are the general rules for this scheme

  • The property you are purchasing could be an existing or new-build home in the UK, priced up to £600,000
  • You must not own any other property anywhere in the world at the time you buy your home supported by the Help to Buy: mortgage guarantee scheme
  • Your mortgage must be a repayment one, not interest only. Offset and guarantor mortgages are also excluded from the scheme
  • You can’t let out the property to somebody else
  • Your mortgage can be taken out by an individual or individuals but not by a company
  • You cannot use the mortgage guarantee scheme with any other Government scheme such as Help to Buy: equity loan or shared ownership. Your deposit for the property can’t come from a government scheme either
  • You don’t have to pay any additional fee to Government to get a Help to Buy supported mortgage
  • The size of the mortgage you apply for must be less than 4.5 times your income.

The Help to Buy: mortgage guarantee scheme will run for three years until 31 December 2016.

How to apply

Either you can apply by going directly to a participating lender or through a mortgage broker.

Contact David for advice or information