Help to Buy Mortgages
The government has created a number of schemes under the Help to Buy umbrella aimed to assist both first time buyers and home movers.
Amber Mortgage Solutions can help you decide which scheme is best suited for you and guide you through the application process.
How We Work
- To start with please either call us or complete the above application form.
- One of our mortgage consultants will be in touch with you to discuss your application.
- After we have your details, we will search the market for the best schemes to suit you.
- We will then talk you through the details of your Help To Buy mortgage.
- 100% Secure, Confidential and hassle free.
What are the Help To Buy Mortgage Schemes?
Help to Buy Shared Ownership
The shared ownership scheme allows people to buy a share in their home even if they cannot afford a mortgage on the entire value of the property.
The buyer purchases a share of the property – usually 25%, 50% or 75% – and the remaining balance is owned by a government-backed housing association. More often than not, the homeowner will then pay rent on this balance.
If your circumstances change and you can now afford more, then you can increase your share in the property. For example, if you start out with a 25% share then you can increase this to 50%, 75% or with some schemes, this can be increased to 100%, giving you full ownership. As your share in the property increases, the rent you pay to the housing association will decrease accordingly.
People seeking a shared ownership mortgage also need to be aware that only properties offered by participating government-backed housing associations, typically new builds, can be purchased under the scheme.
Find out more about the Shared Ownership Scheme.
Who Can Apply For a Help To Buy Shared Ownership Mortgage?
Those who can apply for a mortgage under the shared ownership scheme include:
- First-time buyers
- People who have an existing mortgage under the shared ownership scheme and wish to move property
- People who have previously been homeowners, but do not own a property now and cannot currently afford to buy one
- People who earn less than £80,000 per annum (£90,000 for those living in London)
Whilst the criteria for shared ownership is considered very flexible in terms of lending high loan to values, it is still important that you are able to demonstrate that you can afford your mortgage and rental payments, as well as put down the required deposit.
Help to Buy Equity Loan
Under this scheme the government will lend you up to 20% of the cost of your newly built home. The purchaser will need to put down a 5% deposit and arrange a 75% mortgage to cover the rest.
One key thing to note under this scheme is that no loan fees on the 20% will be charged for the first 5 years of owning your home. Also, to reflect the property prices in Greater London, the equity loan available has been increased from 20% to 40%.
If you were to sell your property then you will need to pay back 20% of the sale value to the government.
The scheme is available to both First Time Buyers and Home Movers, the property being purchased must be a newly built home with a price tag not exceeding £600,000. The scheme is not available to those looking to buy a property in addition to their existing.
Amber Mortgage Solutions team of specialists can help guise you through the process of applying for a Help to Buy equity loan.
Help to Buy ISA
If you are at the saving for your deposit stage then it’s a great idea to check out the governments help to buy ISA.
If you save money using the Help to Buy ISA the government will boost your savings buy 25%, you cans save up to £200 a month and will receive a £50 bonus.
The maximum amount you can receive is £3,000 and that is based on £12,000 savings.
To qualify for a Help to Buy: ISA you must:
- be 16 or over
- have a valid National Insurance number
- be a UK resident
- be a first time buyer, and not own a property anywhere in the world
- not have another active cash ISA in the same tax year: If you have opened a cash ISA this tax year, you can open a Help to Buy: ISA but will have to take additional steps.
To qualify for the government bonus, the property you are buying must:
- be in the UK
- have a purchase price of up to £250,000 (or up to £450,000 in London)
- be the only home you will own
- be where you intend on living
- be purchased with a mortgage
If you have any further questions do not hesitate to call Amber Mortgage Solutions on 01702 619221.