We are quite often asked what we think of the Government’s ‘Help to Buy Mortgage Scheme’ by our clients and so we thought we would feature a more in-depth article on the subject in this weeks news. So sit back, relax, take a deep breath and we will do our best to briefly guide you through the Help to Buy Mortgage Scheme.
Help to Buy Scheme set to become even more popular!
Well let’s start by saying that we at Bright welcomed the governments Help to Buy Scheme with open arms. It has been really tough out there for first time buyers trying to get a mortgage and hop on the property ladder. Trying to raise a 10 to 15% deposit is quite simply not even in reach for some first time buyers. Not to mention, most first time buyers are already renting and looking at making the switch from renting to home owners. While first time buyers are renting it is very difficult to save a deposit for a mortgage as renting can be expensive. The first phase of the Help to Buy mortgage Scheme was only available on new properties. The second phase is set to make the scheme available for second hand properties which will make it even more popular!
If you are looking at using the Help to Buy Scheme we can’t emphasize enough how important it is to talk to an experienced mortgage adviser about it. This will give you a greater understanding of how the various schemes work. The application process for this kind of mortgage is still complicated. Applicants will need to be pre-approved by the local housing association before they can apply and only a certain few lenders will lend on the Help to Buy Scheme. So in short, the more of the process you can offload to an experienced mortgage broker who will guide you through the process, the better!
Your home may be repossessed if you do not keep up repayments on your mortgage.