Help to Buy Mortgage Advice

A Help to Buy mortgage is a type of mortgage where the applicant only needs to put down a 5% deposit of the property’s purchase price. Buyers typically need a 20% deposit to buy a property, which means Help to Buy mortgages could get you on the property ladder much quicker.

This is made possible because the UK Government is providing buyers with an equity loan to cover the rest of the deposit. This is called the Help to Buy Equity Loan Scheme. The equity loan provided by the government will remain interest-free for five years before interest will start being charged.

The remainder of the money required to purchase the property will be provided to you through a Help to Buy Mortgage. These mortgages are offered by a selection of lenders.

Who qualifies for Help to Buy mortgages?

To be eligible to use the Help to Buy Equity Loan Scheme and therefore use a Help to Buy mortgage, you must:

Be at least 18 years old
Be buying your first home (unless you live in Scotland or Wales)
Intend to live at the property as your habitual residence
Have at least a 5% deposit for the property you buy and enough money to cover additional fees

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Who qualifies for Help to Buy mortgages? (continued)

There are also property requirements. For example, the property must fall below a certain value depending on where the property is located within the country.

The exact requirements are best discussed with your mortgage adviser.

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Key considerations when using Help to Buy

Taking out any type of mortgage requires an understanding of how that mortgage works, including repayment periods and interest rates. Using the Help to Buy Scheme demands further understanding of how the government’s equity loan will be repaid in the future.

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Key considerations when using Help to Buy (continued)

The loan isn’t charged with any interest for the first five years. Thereafter, interest will be charged. Repaying the loan isn’t as straightforward as repaying the money borrowed. You’re obligated to repay an amount equal to the percentage of equity you borrowed. This means if you borrowed 15% of the purchase price from the government, you’ll have to repay 15% of the property’s value in the future. Consequently, you could end up paying back much more if your home increases in value significantly. This can also make climbing the property ladder more difficult in the future.

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Why get Help to Buy mortgage advice?

Using a Help to Buy mortgage might not be as easy to understand compared to a generic residential mortgage. Due to the government loan involved, you need to fully understand the situation and what you’re agreeing to before proceeding, including problems you might encounter in the future.

A financial adviser will clearly explain how it all works so you can make an informed decision. If you decide a Help to Buy mortgage is right for you, the adviser will search for the most suitable and beneficial mortgage deals and help you apply.

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Get Help to Buy advice now!

Help to Buy advice and broker services is available through Taylor James now. Speak with our financial advisers to get started.

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Call us today for a no obligation chat about planning your financial future.

Call: 0203 859 3320

Email: contact@taylorjamesfs.co.uk

Please note:

Your home may be repossessed if you do not keep up repayments on your mortgage.

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FAQs

What is mortgage advice?

Mortgage advice is provided by qualified financial advisers to help the client find and secure the most suitable loan to buy residential or investment property. The mortgage adviser will take into account the client’s individual circumstances to discuss mortgage options. The adviser will then search the mortgage market to identify real-time suitable options and make an application. Thus, mortgage advice usually includes mortgage brokering services to provide a holistic and convenient service from start to finish.

Are mortgage advisers worth it?

There are several benefits of using a mortgage adviser. A mortgage adviser can provide clarity to clients which should make the process of getting a mortgage more efficient and less stressful in some cases. They can also help people with unique situations find options when the client may have believed it impossible. Moreover, the mortgage adviser could ensure the client secures the most beneficial type of mortgage for their situation and preferences, perhaps avoiding costly mistakes. Some mortgage advisers can secure better rates and deals due to their connections.

Can Taylor James help people with bad credit?

Mortgage advisers can help people seeking a mortgage with bad credit in different ways. Our advisers can provide advice to clients on how to improve their credit rating and therefore improve their chances of getting accepted for a better mortgage deal. We can also search for lenders that are more willing to provide credit to applicants with a below-average credit history. Every situation is different and there are never any guarantees but we have helped people with bad credit to get a mortgage. Speak to our team to learn more.

Can Taylor James help people in unique situations?

Taylor James welcomes all clients to use our mortgage advice services, including those that may have unique situations. Whether you have multiple income streams or other complex issues regarding pay and employment, it’s unlikely that we won’t have seen your situation before. Our advisers can assist in finding the right lender swiftly, including support regarding providing evidence and other possible application process hurdles. Don’t put off seeking a mortgage due to a non-standard situation and speak to our team today.

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You could purchase a home with as little as a 5% deposit with the Help to Buy Scheme and the right Help to Buy mortgage