Help to Buy Mortgage Advice in Derby
Across All Schemes
As a Mortgage Advisor in Derby, it is our job to explore and explain the different schemes available to you. Before we look into the Help to Buy schemes, we will research the possibility of you getting accepted for a standard mortgage with a 5% deposit and discuss these options with you until we find the most suitable way forward for your personal situation.
Help to Buy commonly applies for First Time Buyers in Derby who are looking for that extra bit of help in order to make that first step onto the property ladder in a newly built home. There are various schemes that come under the Help to Buy umbrella, in our experience the two most popular options are the Help to Buy Equity Loan and Help to Buy Shared Ownership.
Help to Buy Equity Loan
The Help to Buy Equity Loan scheme is one of the more popular options, allowing you to receive a loan from the government of up to 20% of the cost of your newly built home. You will also need a 5% cash deposit on top of this 20%, leaving you a 75% mortgage to pay off. You will not receive any interest fees on this 20% across the first five years of you having ownership of this newly built home. Although, if you have not paid off this 20% by the end of these five years, you will be charged interest on the loan until you pay it off.
Help to Buy Shared Ownership
Help to Buy Shared Ownership scheme, you can typically buy as little as 25% (though this can be lower) or as much as 75% of a home and pay rent on the rest. If you can’t quite afford the mortgage on 100% of a home, Help to Buy: Shared Ownership offers you the chance to buy a share of your home (usually between 25% and 75% of the home’s value) and pay rent on the remaining share. Later on, you could buy bigger shares when you can afford to.
As your expert Mortgage Broker in Derby, we are able to provide Help to Buy Mortgage Advice across all schemes. Find out more information about Help to Buy schemes available to you and the most common Help to Buy mortgage scenarios below.
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