A mortgage supported by the Help to Buy: mortgage guarantee scheme works in exactly the same way as any other mortgage except that under the scheme the Government offers lenders the option to purchase a guarantee on mortgage loans.
Because of this support, lenders taking part are able to offer home buyers more high-loan-to-value mortgages (80-95%).
You will still be fully responsible for your mortgage repayments. So if you have a 5% deposit, you will need to take out and pay back a 95% mortgage.
A mortgage under the Help to Buy: mortgage guarantee scheme works like any other mortgage. Your lender will check that you can afford the mortgage and that you do not have a history of payment difficulties.
• The property you are purchasing could be an existing or new-build home in the UK, priced up to £600,000
• You must not own any other property anywhere in the world at the time you buy your home supported by the Help to Buy: mortgage guarantee scheme • Your mortgage must be a repayment one, not interest only. Offset and guarantor mortgages are also excluded from the scheme you can’t let out the property to somebody else
• Your mortgage can be taken out by an individual or individuals but not by a company
• You cannot use the mortgage guarantee scheme with any other Government scheme such as Help to Buy: equity loan or shared ownership. Your deposit for the property can’t come from a government scheme either
• You don’t have to pay any additional fee to Government to get a Help to Buy supported mortgage
• The size of the mortgage you apply for must be less than 4.5 times your income.
The Help to Buy: mortgage guarantee scheme will run for three years until 31 December 2016
Oxford Mortgages does not charge fees for mortgage advice; commission is received from the lender.
Important risk warning:
Your home may be repossessed if you do not keep up repayments on your mortgage.
Oxford Mortgages is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority. Proprietor: John Christopher Ellis