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Oxford Mortgages

Help to Buy from oxford mortgages : Mortgage guarantee

How does it work?

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.

Example: for a home with a £200,000 price tag

Who is eligible?

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.

To qualify for a mortgage supported by Help to Buy: mortgage guarantee:

• 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.