The Government’s new ‘Help to Buy’ Scheme opens the door for Contractors who are buying for the first time or looking to move up the property ladder.
What is the ‘Help to Buy’ Scheme?
“Help to Buy” is a Government backed initiative aimed at making the first rung of the property ladder or a subsequent movement up it, more accessible for those struggling to save a suitable deposit.
The scheme has two “Help to Buy” options available for Contractors purchasing a property up to the value of £600,000. These are:
- Equity Loan – available on new build properties only, the Government provides an equity loan of up to 20% of the purchase price towards your deposit, alongside a traditional mortgage
- Mortgage guarantee – available for new and pre-owned properties, the Government guarantees a standard mortgage of up to 95% of the purchase price. The guarantee will also be available on re-mortgages, so those Contractors that are on a lender’s Standard Variable Rate (SVR)