Help to Buy

Help To Buy Expert Advice

Help to Buy was launched by the government as a way of helping buyers afford their next home. You must be a first time buyer to use Help to Buy, we would refer you to www.helptobuy.gov.uk for up to date criteria as it can change without warning.

At Wyke Financial our experienced specialists have been heavily involved with all Help to Buy formats and below we will set out an overview of the different options available:

A MORTGAGE IS A LOAN SECURED AGAINST YOUR  HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Help to Buy: Equity loan

Probably the most well known of the schemes but also the most misinformed. With the Help to Buy: Equity Loan the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.

You won’t be charged loan fees on the 20% loan for the first five years of owning your home (although a £1 per month fee applies).

You must be a UK tax payer and must only own the newly purchased property on completion.

You must be a First Time Buyer and each region has its own value cap for the property. Please visit the help to buy website to find out the value cap in your area.

All applications are subject to strict affordability criteria and a separate application to help to buy.

At Wyke Financial we have a vast wealth of experience in this market and unlike other firms will help you through this process and assist with your application forms. We do not charge for this service as it is included as part of our standard terms of business.

This scheme is available in England only. The Scottish Government, Welsh Government and Northern Ireland Housing Executive run similar schemes – check out their websites.

London Help to Buy

To reflect the current property prices in London, from February 2016 the Government is increasing the upper limit for the equity loan it gives new home-buyers within Greater London from 20% to 40%.

Help to Buy: Mortgage Guarantee Scheme

Reintroduced in 2021 the scheme is available via certain banks and building societies to enable first time buyers to get on the property ladder with just a 5% deposit. The government will guarantee the bank an additional 10% of the property price which does not impact you as the consumer.  We would note there are other 95% schemes available away from the mortgage guarantee scheme that may be more competitive.

Help to Buy: ISA

Purely a savings scheme with a top up from the government. From a mortgage perspective most lenders will have no issue in you using this scheme although we would advise to check when being used in conjunction with other schemes. The funds will be handled by your solicitor you will just need to advise us of any funds that will come from the help to buy ISA so we can advise the lender accordingly.

The Help to Buy ISA scheme is no longer available for new savers.

Insurance

If you are saving to buy your first home and save money into a Help to Buy: ISA the Government will boost your savings by 25% the maximum government bonus you can receive is £3,000.

Please visit : https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/ for more information on this scheme.

Moving or Re-Mortgaging

If you have a Help to Buy Equity loan or similar government or builder scheme you may find a few obstacles in your way when it comes to moving home or re-mortgaging.

The housing association will need to be informed of the outcome and you may find there is additional cost involved with this.

You may also be required to have an independent survey on your property and have additional solicitor work carried out.

It can be a time consuming and confusing process, especially if it is not something you have been familiar with before. Regrettably it is our experience of the industry that usually the client is left to handles this side themselves. This can often cause delay and increased costs.

YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.

At Wyke Financial we have streamlined a process whereby you have the option to employ us to help you in the regard of a help to buy move or re-mortgage, we call this “Help to Buy Care”.

Help To Buy

For more information on any of the above schemes (including advice on fees and paying back your loan) please visit www.helptobuy.gov.uk or arrange an appointment with one of our specialist brokers today.