Help To Buy Homes & Properties
According to Which.co.uk?.an 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.