Help to Buy: What do the Recent Changes Mean for You?
You may have recently heard about the changes that are being made to the popular Help to Buy Scheme and ISA. If you’re a first time buyer looking to get on the housing ladder, then you may be wondering what these changes mean and most importantly, how they may affect you.
In this article, we’ll be explaining the scheme’s recent changes and exploring what options may still be available to you as a first time buyer.
So what’s changing?
Simply put, at the end of 2016 the Mortgage Guarantee Scheme will be coming to an end. The scheme was intended for first time buyers, giving them the opportunity to buy a property within the UK up to the value of £600,000. As part of the scheme, buyers were required to only put down a 5% deposit and purchase the property as their sole home.
What Are Your Options?
If you’re thinking about purchasing your first home, then the end of this scheme may have you wondering what other options are still available to you?
For starters, the Equity Loan Scheme will still be available to first time buyers and existing homeowners alike. Similarly to the Help to Buy scheme, home buyers can purchase their home with a minimum of 5% deposit – however the government will also let you borrow 20% more – which means you’ll only need a mortgage for 75%. Furthermore, like Help to Buy, this scheme is only available on properties of a value up to £600,000 and for buyers who are purchasing the one property only.
It is also important to note that the Equity Loan Scheme is available on new build homes and only if the developer chooses to advertise it.
The Welsh Equity Loan Scheme is identical to the English scheme, except that it can only be applied to purchases of up to £300,000, as opposed to £600,000.
The Scottish Equity Loan differs in that it can only be applied to new builds up to the value of £250,000, with buyers – both first time and existing – requiring a minimum deposit of 5%. However, the Scottish Government will then contribute a further stake of 10-20% of the property’s value, if you are eligible for the scheme.
Finally, if you are not planning to purchase a new home for several years to come, then why not consider a Help to Buy ISA Scheme? This government scheme allows you to put up to £200 a month into an account and then the government will match you £50 for every £200 you save. With this scheme, you could receive up to £3000 from the government in your savings account, ready for when you want to put down a deposit.
Are you a first time buyer looking for more information and advice on the schemes available to you?
Amber Mortgage Solutions are leading whole of market mortgage specialists experienced in helping people at all stages of the property ownership journey. For hep finding a suitable mortgage for you, contact us today and speak with a member of our expert, friendly team. Call 01702 619221 or contact us online.