Help to Buy
Help to Buy was launched by the government as a way of helping buyers afford their next home. The help to Buy equity Loan Scheme finished in 2022. If you took an equity loan scheme we are able to help with the re-mortgaging of this to either change lender or pay back the Help to Buy loan.
The current available scheme is the 5% deposit mortgage Guarantee Scheme. Which is detailed below.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Help to Buy: 5% Mortgage Guarantee Scheme
Reintroduced in 2021 the scheme is available via certain banks and building societies to enable first time buyers to get on the property ladder with just a 5% deposit. The government will guarantee the bank an additional 10% of the property price which does not impact you as the consumer. We would note there are other 95% schemes available away from the mortgage guarantee scheme that may be more competitive. Visit www.helptobuy.gov.uk for more info.
Moving or Re-Mortgaging
If you have a Help to Buy Equity loan or similar government or builder scheme you may find a few obstacles in your way when it comes to moving home or re-mortgaging.
The housing association will need to be informed of the outcome and you may find there is additional cost involved with this.
You may also be required to have an independent survey on your property and have additional solicitor work carried out.
It can be a time consuming and confusing process, especially if it is not something you have been familiar with before. Regrettably it is our experience of the industry that usually the client is left to handles this side themselves. This can often cause delay and increased costs.
here at wyke financial we have dealt with all types of help to buy move and can guide you through the process
Help to Buy: ISA
Purely a savings scheme with a top up from the government. From a mortgage perspective most lenders will have no issue in you using this scheme although we would advise to check when being used in conjunction with other schemes. The funds will be handled by your solicitor you will just need to advise us of any funds that will come from the help to buy ISA so we can advise the lender accordingly.
The Help to Buy ISA scheme is no longer available for new savers.
If you are saving to buy your first home and save money into a Help to Buy: ISA the Government will boost your savings by 25% the maximum government bonus you can receive is £3,000.
Please visit : https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/ for more information on this scheme.
YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.
At Wyke Financial we have streamlined a process whereby you have the option to employ us to help you in the regard of a help to buy move or re-mortgage, we call this “Help to Buy Care”.
For more information on any of the above schemes (including advice on fees and paying back your loan) please visit www.helptobuy.gov.uk or arrange an appointment with one of our specialist brokers today.