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Help To Buy Mortgages

When you’ve found a house you love, you should always follow your heart.

Saving up a deposit for a house isn’t always easy. Finding your dream home and having to settle for something less can be disheartening. At Avail Mortgage Brokers, we believe that you should never settle for anything less than butterflies, so if you’ve found a new build house you’ve fallen in love with, then our mortgage brokers and mortgage advisers are here to provide financial help. So long as you can afford a 5% deposit, you may be eligible for a government loan mortgage scheme – Help To Buy, which can pay as much as 40% toward the property value. The remaining value can be made up through a Help To Buy mortgage, which we can help source, provide and instruct for you – to help secure that new build home.

 

From our range of specialist repayment mortgages through to mortgage interest rates which include fixed interest rates and variable interest rates, we’ll select the most suitable mortgage options based on your financial situation and ensure you’re aware of the repayment basis details too. Guiding you through the Help To Buy scheme, we’ll ensure that your personalised client portal provides you with key access to your mortgage, mortgage documents and contact details of your own mortgage adviser, who is there to help you through the process. No mortgage questions are ever daft. No issue is ever too small. We’re always happy to help you, to ensure you get the most out of your mortgage.

To learn more about our Help To Buy mortgage quotes – as well as our advanced mortgage calculator – please do not hesitate to get in touch with us today. We provide help for clients in areas such as Leeds, Huddersfield, Bradford, York and Harrogate, so we know that we can help you too.

 
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What Is Help To Buy & Does It Work?

The Help to Buy scheme provides customers with an equity loan where the government lends first time buyers and existing homeowners money to buy a new build home. The purchase price of the new build home must be no more than £600,000. Under the scheme, you can borrow 20% of the purchase price interest free for the first five years as long as you have at least a 5% deposit. If you live in London, you can borrow up to 40% of the purchase price. To make up the remaining 75% (or 55% in London), you can take out a repayment mortgage.

What Is A Repayment Mortgage?

With a repayment mortgage, you’ll be making monthly repayments for an agreed period of time (known as the term) until you’ve paid back both the capital (money borrowed) and the interest (the charge made by the mortgage lender on the amount you owe).

This means that your mortgage balance will get smaller every month and, as long as you keep up the mortgage repayments, your mortgage will be repaid at the end of the term (usually 25 years).

You’ll also need to decide on the type of repayment mortgage that you want – whether that’s a fixed interest rate or a variable interest rate.

Fixed Interest Rate Mortgage: A fixed rate mortgage is a mortgage loan where your interest rate is guaranteed to stay the same for a set period of time (typically 2 – 5 years).

Variable Rate Mortgage: A variable rate mortgage is a mortgage loan where the interest rate – and therefore your monthly mortgage repayment – can fluctuate throughout the mortgage term. There are various types of variable interest mortgages, such as; A standard variable rate is where the lender increases or decreases the interest rate; A tracker rate typically follows the movements of another interest rate, usually the Bank of England’s base rate.

Here at Avail Mortgages, we can help you find the right mortgage quotes to aid your Help To Buy application, and make your new build house a home as soon as possible. Therefore, if you’re looking for a repayment mortgage from a reputable mortgage company, then here at Avail Mortgages, we can help and recommend that you get in touch. At Avail Mortgages, we help clients in Leeds and the surrounding areas including Huddersfield, Bradford, York and Harrogate secure their new build home with the best mortgage deal, and provide support through the Help To Buy scheme too.

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What Is The Interest Rate On Help To Buy?

When it comes to the government’s equity loan scheme, you don’t pay any interest or product fees for the first five years. However, in the sixth year, you’ll be charged 1.75%. After this point, the fee increases based on the Retail Prices Index (RPI) plus 1% each year. It’s important to note that these fees don’t go toward paying off the government loan. It’s when you sell your home (or the mortgage is paid off), that you must repay the equity loan plus a share of any increase in the house’s value.

Help To Buy Example

Your New Build Home’s Current Value = £300,000
Your Total Deposit (5%) = £15,000
Equity Loan (20%) = £60,000
Mortgage (75%) = £225,000

The house then sells for £375,000.
Increase In Value = 25%
Equity Loan Repayment = £75,000 (£60,000 + 25% profit)
Mortgage = £225,000
Your Share = At least £75,000

The remaining £75,000 (or more) can be used as a deposit for your next home.

 

Who Qualifies For Help To Buy?

To be eligible for the Help To Buy government scheme, you must meet the following criteria:

  • You must be aged 18+.
  • The property you wish to purchase is a new build home.
  • The new build home doesn’t cost a penny more than £600,000.
  • If you own another home in the UK or abroad, you must have sold your current home before or at the point of completion on your Help to Buy property.
  • You can’t rent out your existing property to buy a second home through the scheme, and Part Exchange is not available through this government scheme either.

Moreover, you must take out a mortgage which will need to be for 25% or more of the full purchase price. You’ll also need to prove to mortgage lenders that you can afford the mortgage repayments and related fees on the new build home you’d like to purchase. Here at Avail Mortgages, we can use our mortgage affordability calculator to determine this, and provide advice and support throughout the process.

To apply for the equity loan itself, you must contact the Help To Buy agent in your local area, and we can help you with this. You must buy your new build home from a registered Help To Buy builder, and your local Help To Buy agent should have a list of registered builders for you to choose from. Then you can go and visit the site, choose your fittings and furnishings and await your moving in day.

 

Why Choose Avail Mortgages?

Expert Advice

Equity loans. Deposits. Help To Buy mortgage quotes. Interest rates. There’s a lot to remember when it comes to the scheme, and plenty of opportunity for confusion if going it alone. Our mortgage advisers and mortgage brokers will ensure that you’re fully aware of the scheme’s criteria, the government loan repayment process and mortgage rates, and help you put a plan in place for mortgage repayments. You’ll be a Help To Buy wizard in no time at all, and we’re always there to provide you with extra support with our mortgage solutions, as and when needed.

Technology

We excel in mortgage technology, and are extremely proud of our client portal and mortgage calculator. From searching mortgage loan options and the best deals through to mortgage application collaboration and the sharing of key mortgage documents, our mortgage technology stands out from the rest, and ensures a quick and efficient mortgage process.

Best Mortgage Deals

We’re always on the lookout for the best mortgage deals, and our mortgage providers and mortgage brokers will always pass the savings onto you. We also are committed to the principles laid down by the Financial Conduct Authority (FCA) and their ‘Treating Customers Fairly’ (TCF) initiative, and this is highlighted by our glowing reviews and client testimonials.

 

Get In Touch

What is Help To Buy? How Does Help To Buy Work? How does a repayment mortgage help, and what mortgage interest rate is right for me? How do I navigate the mortgage application? At Avail Mortgages, we can answer all of these questions and more, and provide you mortgage advice that helps make your new build house a home as soon as possible. At Avail Mortgages, we help clients in Leeds and the surrounding areas including Huddersfield, Bradford, York and Harrogate, and provide invaluable advice that goes beyond our mortgage services. We’ll ensure you find the best mortgage deal for you, and that the mortgage process is a smooth one.