Help to Buy Mortgages.
Fox Davidson work with clients to secure mortgages on the government’s Help to Buy scheme in Bristol, Bath & the South West.
Help to Buy equity loan scheme.
The governments Help to Buy equity loan scheme works as follows:
- UK government lend you a 20% deposit at a rate of 0% for 5 years (1.75% year 6 onwards)
- You contribute a deposit of at least 5%
- A mortgage lender loans you the remaining 75%
Launched in April 2013 the scheme has seen many thousands of borrowers including first time buyers and home movers use the scheme to purchase new build property.
The equity loan scheme allows you to take a mortgage product at a loan to value of 75% and therefore access better mortgage rates than would have otherwise been available at higher loan to values.
The only draw back to the scheme is that when you come to sell your property (or after 25 years – whichever is sooner) you will have to repay 20% of the value of your property back to the Government.
Find out more about the Help to Buy equity scheme here:
The application process
Fox Davidson will handle the whole process on your behalf. In the first instance we will complete the help to buy application form and send it off to our help to buy partners in the South of the UK. You can find out more details about them by clicking here: https://www.helptobuysouth.co.uk/
Once the help to buy south team have approved your application then we can submit the full mortgage application to the mortgage lender. Fox Davidson will complete all of the mortgage lenders application forms for you and submit the application to the lender on your behalf.
Once the mortgage is agreed and the offer is produced then we will liaise with your nominated solicitors to oversee the legal process until you move into your brand new house or flat!
Help to Buy equity loan remortgage.
With the help to buy scheme having now ran for over 2 years there are many clients that took out a 2 years fixed rate and that now wish to remortgage to secure a better rate of interest or who wish to remortgage to repay some of the equity loan.
As a whole of market mortgage broker we have access to lenders that are currently lending up to 90% loan to value on a remortgage. If your property has increased in value, then you could be able to pay back a large chunk of the equity loan to the Government, thus reducing their equity share.
The Help to Buy ISA
Launched in December 2015 the Help to Buy ISA is a Government savings scheme designed to help First Time Buyers save to buy a property.
For every £200 you save the Government will contribute 25% up to a maximum of £3,000.