By admin 2020-11-10 21:36:47

Help To Buy Homes & Properties

According to application for an equity loan up to 40% of the property's value can be bought by people buying a new-build home in Great London under the Government's Help to Buy scheme. Help to Buy equity loans are available for first-time buyers and existing homeowners looking for s newly built home to buy.

In a Help to Buy, within London the government will lend you up to 40% of the property's value (compared with 20% if you were buying outside London). You then need to put down a deposit of at least 5% and get a mortgage to cover the remaining 55% of the property price.

The benefits of using London Help to Buy

  • You will only need a 5% deposit (as opposed to the 10% usually required by mortgage lenders if you don't have an equity loan).
  • As you're taking out a smaller mortgage, it will be easier for you to prove to lenders that you can afford the monthly mortgage repayments.
  • Borrowing a smaller proportion of the property's value from a mortgage lender gives you access to better mortgage rates.

How to qualify for a Help to Buy

To qualify, you will need:
  • Be buying a new-build home worth £600,000 or less
  • Have a deposit of at least 5%
  • Not let out the property or use it as a second/holiday home

Applying for Help to Buy

To apply, you will need:
  • A registered Help to Buy house builder.
  • Visit the official London Help to Buy website to find out which developers are currently offering properties.

For more information speak to a mortgage consultant or get a quote today.

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