Government is to scrap the Help to Buy Mortgage Guarantee scheme in 2017 but says it will continue to back the Help to Buy Equity Loan scheme.
Equity Loan v Mortgage Guarantee
The Help to Buy Equity Loan scheme helps homebuyers secure a new-build property with a 5% deposit. What’s more, the Equity Loan scheme also offers a 20% equity loan, which is interest free for five years. This allows you a cushion of time to settle in and make your house a home.
Help to Buy 2 - the Mortgage Guarantee scheme was then introduced to increase the availability of high-loan mortgages (90-95%). But as confidence has returned to the market, mortgage lenders are now offering higher value loans outside the Mortgage Guarantee scheme.
Homes available with Help to Buy Equity Loan
Our new-build homes coming soon to Farefield Close in Dalton near Thirsk will be available to buy with only a 5% deposit thanks to the continuing Government Help to Buy Equity Loan scheme.
The Help to Buy Equity Loan scheme is not just for first-time buyers. The initiative is designed to help anyone looking to leap on or up the property ladder, so long as they are purchasing a new-build home below £600,000.
New-build homes are becoming extremely sought after as homebuyers benefit from Help to Buy.The new-build houses at Farefield Close, Dalton, Thirsk, continue the expansion of a new community of homes at Willow Bridge Lane.
To apply for Help to Buy Equity Loan you’ll need to ensure:
- you can fund up to 75% of the new-build home through a conventional mortgage.
- you must not be borrowing more than 4.5x your gross household income (minus any debts)
- your monthly repayments (mortgage, equity loan interest and any services charges) must not be more than 45% of your monthly net household income (minus any debts)
- you have no other residence or properties in your name or have any properties in your name before the completion date
- you do not rent out your existing home and buy a second home through Help to Buy
- you have access to a minimum 5% deposit