Everyone’s talking about it – the scheme to help thousands of people get on to the property ladder. The Government brought it in 3 months early and the big question is has it helped?
The Prime Minister suggests show saying that the scheme attracted 4000 applicants in December which was double that of November.
The scheme is aimed at those who are struggling to save up the large deposit required by many banks. As a buyer you would only need 5% deposit. The government and the bank will then jointly guarantee up to the next 15% of the value of the property in return for a fee which will be paid for by the lender. There will be rigorous credit and affordability checks to ensure that as a borrower your income can be verified. The new mortgages will not be available to people with bad credit history.
There are two parts to the scheme:
Mortgage Guarantee
This is available on both pre-owned and new build properties with a standard mortgage of up to 95% of the purchase price.
QUICK CHECKLIST– Here’s a quick checklist of those eligible for the scheme:
- Available to both existing home owners and first-time buyers
- You need a minimum of a 5% deposit
- Available on all previously owned and new build properties up to the value of £600,000
- Must be your only property (and in the UK)
- Borrowing from a participating mortgage lender
Equity Loan – available on new build properties only, by using a government equity loan of 20% of the purchase price plus a traditional mortgage.
QUICK CHECKLIST– Here’s a quick checklist of the basic criteria:
- Available in England for affiliated new builds with a value up to £600,000.
- Both first-time buyers and existing homeowners are eligible.
- Buyers need a minimum deposit of 5%.
- You must occupy the property and it must be your only property.
Whatever your situation speak to your financial advisor to find out if you are eligible. We have helped so many people move house in 2013 and we expect 2014 to be even better especially with the help of this scheme.
At this stage over the next few days the Government and banks are releasing more and more information as the hours pass by.
We shall continue to update information as it happens but ideally you need to speak to your financial advisor to see if you will be eligible. Please however, feel free to call us on 01772 424999 or fill in the form below for more information and help talking through this process:
