Help to Buy Equity Loan in Bridge of Weir

The Help to Buy equity loan in Bridge of Weir is open to first-time buyers and home movers who want to move up the property ladder.

This is for homes, houses and properties in the UK to a maximum sum of £600,000.00. However, please be aware that you cannot sub-let your home using this deal.

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The way this equity scheme works is by the government paying up to 20% loan towards the mortgage and the buyer putting down a minimum of 5% deposit, leaving in total for repayments 75% of the sum.

Please bear in mind when selling this property, you will need to pay back 20% of the sale price, and if your house price has increased, then this repayment sum will increase also.

Equity Mortgage Government Loan Option

Equity loans help those buyers who can't afford the large deposits, so to capitalise on this offer, please fill in the contact form where the providers, lenders and agents can assist you by giving you the most up-to-date interest rates available and the best UK deals.

These loans can be provided with good interest levels from certain building contractors regarding newly built homes.

A minimum of a 5% down payment is needed to obtain a 20% equity loan contract through the government, accompanied by a 75% loan plan from a qualified lender.

This project has shown great results for many people looking to purchase a property. With this, home movers and new buyers can receive mortgages of 95%, with 15% being supplied by the government.

Both new builds and pre-existing houses are offered at this scheme stage.

What is the Help to Buy Scheme?

The help-to-buy scheme is a government-funded plan to help first-time buyers in the property market. It is very easy now the government has provided this offer, but it is limited to certain house builders.

Borrowers remain fully responsible for the repayments, but this scheme is a great financial help for buyers looking for property, homes and houses.

The UK government created this project in 2013 to enable buyers and house sellers to purchase a new property using a 5% deposit.

The equity loan scheme has already helped more than 10,000 purchasers and home sellers, becoming increasingly popular. As a leading home loan advisor in Bridge of Weir, we have specialist experience in the plans and can offer whole of market guidance.

Our team will help you through every part of the process and also provide more info on buying your house.

If you fill in the contact form, we can assist you with a mortgage calculator working out all the latest interest rates from all the banks and financial sector to get the best deals available.

It is ideal for purchasers and home movers who cant afford to pay the large deposits currently being asked.

What types of help-to-buy mortgages are available?

There are several types of Help-to-Buy mortgages on the market, such as:

Fixed-interest rates

A fixed-rate mortgage has an interest rate that remains the same for the entire mortgage term.

The deal tends to last for 2 to 10 years, and your monthly payments will also be fixed.

A fixed-rate deal tends to be more expensive than variable-rate deals, as your rates won't fall.

Tracker rates

A tracker-rate mortgage changes its rate according to the Bank of England's base rate.

As the Bank of England rates change, your mortgage rate will change accordingly.

Trackers can be cheaper; however, this depends on the base rate, so they could be more expensive than a fixed rate.

Discount interest rates

A discounted rate mortgage gives lenders a discount off the SVR for up to five years.

So, if your discounted mortgage rate was 2.5% and the SVR was 4%, you have received a 1.5% discount off your monthly interest payments.

This discount remains fixed, so your interest rate will change per the SVR.

Cashback deals

Cashback mortgages offer lenders a lump sum incentive when they have paid off their mortgage.

You can choose whether to pay the money straight away or wait until you have started to make your monthly payments.

It is wise to consider the cashback based on the total cost to ensure you receive the best mortgage deal.

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Fees associated with Help to Buy

There are man charges associated with a help-to-buy mortgage, such as:

Interest payments
Management charges
Admin fees
Stamp duty

First-time buyers that are paying less than £300,000 will not need to pay stamp duty.

How much deposit do you need for a help-to-buy mortgage?

To qualify for a help-to-buy mortgage, you must have a deposit of at least 5%.

You can then borrow 20% or 40% of your property's price if you are based in London.

The 20% will be interest-free for up to five years, helping you keep your monthly payments low.

Help-to-buy regional caps

North East	£186,100
North West	£224,400
Yorkshire and the Humber	£228,100
East Midlands	£261,900
West Midlands	£255,600
East of England	£407,400
South East	£437,600
South West	£349,000
London	£600,000

Who is eligible for the help-to-buy equity loan?

To be eligible for the Help to Buy scheme in England, you will need the following to be true:

You are over 18 years old.
You are a first-time buyer.
You can afford the fees and interest rates.
You can afford the 5% cash deposit.
The property is a new build.
A registered help-to-buy home builder sells the property.

What is the interest charge on a help-to-buy equity loan?

For the first five years, your equity loan is interest-free. You will receive an interest rate of 1.75% from the sixth year.

The interest rate will increase based on the Consumer Price Index (CPI), plus an additional 2%.

If you took out the equity loan before December 2019, you would only be charged an additional 1%.

What is the help-to-buy shared ownership scheme?

The help-to-buy shared ownership scheme allows homebuyers to purchase a share of their property and pay rent to the government on the remaining loan.

You can apply for the shared ownership scheme if you are looking to move and are currently on a shared ownership scheme. Or if you are a first-time buyer aged 18 or above.

The help-to-buy shared ownership deal is available on newly built properties and allows you to own between 25 to 75% of your property.

What are the pros and cons of the help-to-buy scheme?

Before enrolling in the help-to-buy scheme, there are many advantages and disadvantages.

Advantages of help-to-buy

You only need a 5% deposit.
You can access lower mortgage rates.
Equity loans are interest-free for up to five years.
Low-interest rates after the first five years.
You can repay an equity loan at any point.

Disadvantages of help-to-buy

Your repayments are not fixed.
Equity loan interest rates can increase rapidly.
Limited lenders offer help-to-buy mortgages.
Remortgaging a property can be hard.
You can only use the Help to Buy on new builds.
You need permission to renovate your home.
There is a risk of falling into negative equity.
Price caps can limit your property range.

When will help-to-buy end?

The help-to-buy scheme will close at the end of March 2023.

Therefore, you have until such time to take out this kind of help-to-buy equity loan.

First-Time Buyers in Bridge of Weir

If you'd like help with applying, our company offers specialist advice https://www.amazingmortgagedeals.co.uk/renfrewshire/bridge-of-weir/ that will help you discover the best strategy for what you need.

Our help is always free to you, and the consultants provide comprehensive information personalised to suit your requirements.

Our experts always try to locate the best package for you, whether for a new home purchase, a remortgage or a buy-to-let plan.

One of our specialist advisors will be appointed to provide personalised help and advice and deal with each part of finding and applying for a home.

They'll also handle the providers, solicitors and surveyors at every phase of the process, ensuring it goes smoothly from start to finish.

We can offer advice for a lot of options, including 95% loans from UK government schemes that can help you get the perfect house.

We’ll try our best to take a bit of the hassle away from you and make finding plans as simple as possible. Speak to our staff today to find out about just how we can assist you in discovering the ideal mortgage packages.

FAQs

What does LTV mean?

LTV stands for Loan-to-Value.

The Loan-to-Value is calculated by dividing the loan amount by the asset's value.

Is the mortgage guarantee scheme the same as Help to Buy?

The mortgage guarantee scheme is different to the Help-to-Buy scheme.

As a government-supported home ownership scheme, the mortgage guarantee scheme helps individuals get on the UK housing ladder.

The Help-to-Buy scheme allows first-time buyers to purchase a new build home by borrowing an equity loan from the government.

Can I use help-to-buy for a second home?

The help-to-buy scheme cannot be used to buy a second home; this government scheme is only available for first-time buyers.

Therefore, it cannot be used for second properties or buy-to-let properties.

Can I use a help-to-buy if I am self-employed?

You can use the help-to-buy scheme if you are self-employed and have one year's accounts.

Be aware that limited lenders offer help-to-buy mortgages to the self-employed, but they do exist.

Fill in our Application Form

Our devoted mortgage experts in Bridge of Weir will assess your situation and attempt to get the right option for you.

The same agent will assist with forms and work with local government agents to ensure your house-buying process is as smooth as possible.

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The professional agents will be pleased to support you with your requirements, whether you are applying for your first mortgage or relocating.

Get in touch with us today to gain independent financial advice with a specialist advisor and learn what could be the best deal for you personally.

To find out more regarding mortgage lenders, look here - https://www.amazingmortgagedeals.co.uk/reviews/halifax/renfrewshire/bridge-of-weir/ or speak to us now.