Help To Buy Scheme


Share on facebook
Share on Twitter
Share on Google+
H2B

The UK housing market has seen some improvements over the last couple of years but these tended to be very localized .  However after the budget are we set for a new boom in new houses and a kick start to the property market?

 

Help To Buy

Help to Buy

Help To Buy Scheme information advice

The chancellor also known by the leader of the opposition as the “downgraded Chancellor” unveiled a Help to Buy scheme, with the government putting up a fifth of the initial purchase cost of newly built houses. The Help to Buy scheme expands a previous scheme, FirstBuy, which was aimed solely at first-time buyers. It now enables ALL PURCHASERS to put down a 5% deposit on a newly built home.

“Importantly this means a much smaller deposit is now required than the banks demand”

 

The new help-to-buy scheme for those struggling to find mortgage deposits will include £3.5 billion for shared equity loans, and a Government interest-free loan worth 20% of the value of a new-build house. This is great news for builders and the construction industry

 

The new help-to-buy scheme for those struggling to find mortgage deposits will include £3.5 billion for shared equity loans, and a Government interest-free loan worth 20% of the value of a new-build house. This is great news for builders and the construction industry

 

Who qualifies?

The scheme is open to first-time-buyers as well as home movers

You must have a minimum deposit of 5% of the full purchase price

You must be eligible to take out a mortgage from a commercial lender

 

What properties are included?

New build properties only (check out the mortgage guarantee scheme below for existing properties)

Properties under £600,000 in value

Help to Buy is currently only available in England

 

The Chancellor said the scheme will be available to everyone who wants to buy a home from next year.

 

New Mortgage Guarantee Scheme

On top of this came a mortgage guarantee scheme which aimed to help people struggling to buy their own home. Osborne said £3.5bn would be committed over the next three years for new homes worth less than £600,000.

 

A new mortgage guarantee, sufficient to support £130 billion of loans, will help people who cannot afford a big deposit.

 

George Osborne said  “The deposits demanded for a mortgage these days put home ownership beyond the great majority, who can’t turn to their parents for a contribution. And that’s not just a blow to the most human of aspirations, it’s a setback to social mobility and it’s been hard on the construction industry too”

 

The loans will be available to those who can find a 5% deposit with the loan worth up to 20% of the value of a home worth up to £600,000 and repayable when it is sold.

 

The price tag of £600,000 was a  huge surprise that meant unlike most schemes that aimed to help first time buyers those already on the property market could receive assistance.

 

The Government will also offer interest-free loans for five years for those wanting to buy new-build homes.

 

Download

You can download full Budget report here

Useful websites

Money Advice Service

Government home ownership schemes

Author : Nick Marr


Share on facebook
Share on Twitter
Share on Google+

Subscribe To Our Newsletter

Connect with The House Shop