Q. Who is it for?
The Help to Buy mortgage guarantee scheme helps home buyers with good credit records who can afford to purchase the property outright with a deposit as low as 5%.
These include First Time Buyers, trying to get onto the property ladder, and ‘second-movers’, needing to move up the ladder to a bigger home. These loans are not available for buy-to-let landlords or second home owners or for a shared ownership purchase.
Q. Who is eligible – and for what types of property?
- Existing home owners and first time buyers
- Buyers with a minimum deposit of 5% of the purchase price
- Buyers who are borrowing from a participating lender
- Available across the UK on newly built or ‘second hand’ up to £600,000
- Residential property, where you plan to live in it and not rent it out
- Your only property, so you cannot have an interest in any other property, anywhere in the world
Does the scheme guarantee my payments?
The scheme does not guarantee your payments – the guarantee protects your lender rather than you (as a borrower) against losses. You are responsible for paying your mortgage under this scheme. Borrowers could lose their home if they do not keep up their mortgage repayments on a Help to Buy supported mortgage in exactly the same way as any other mortgage.
What happens if my circumstances change?
A Help to Buy supported mortgage works in exactly the same way as any other mortgage. Borrowers should contact their lenders, in accordance with the terms and conditions of their mortgages if their circumstances change.
What happens if I get in to payment difficulties? Will the Government repossess my house?
A Help to Buy supported mortgage works in exactly the same way as any other mortgage. If you get into payment difficulties you should contact your lender as soon as possible who will be able to provide advice to you. All forbearance and repossessions will be undertaken by lenders, not the Government.