government help to buy scheme

Help to BuyEquity loans taken out under the Help to Buy scheme since its inception have reached a total value of £600m, government figures have revealed.

Since the scheme launched in April 2013 14,823 equity loans have completed to the end of January, 89% of which were for first-time buyers.

Leeds topped the table as the council which completed the most purchases with 268.

The Help to Buy equity loan scheme can be used to purchase a new build property up to the value of £600,000 with a 20% equity loan up to a maximum of £120,000.

The government has set aside a pot of £3.5bn to service the equity loan scheme.

The availability of a government loan to purchase a new build home helped to drive up house building activity last year.

Planning permissions granted in 2013 reached their highest level since 2007 climbing to 174,471, a report from the House Builders Federation showed.

The report revealed the scheme was delivering around 2500 reservations a month.

But despite the upward trend, the 2013 total figure is still short of meeting the country’s annual housing demands.

The Office of National Statistics predicted that 232,000 households are projected to form each year.

Stewart Baseley, executive chairman of the HBF, said: “Help to Buy equity loan is increasing demand for new homes and the industry is increasing its output as a result.

BarclaysBarclays to launch into Help to Buy 2 next Tuesday

The lender will offer two products including a three-year fix at 5.35% and a five-year equivalent at 5.49% from Tuesday 14 January.

Both products are fee-free and available up to 95% loan-to-value. A minimum loan size of 50,000 and maximum of £570,000 apply to both products.

The Help to Buy mortgages will be available through all channels, both direct and intermediary, and the products will be available on new build and existing properties. Only house purchase loans will be accepted by Barclays.

To find out more about Help to buy and for a personal illustration, please give one of our qualified advisers a call or email us via “Contact Us” page with your requirements.

 

Help to BuyHelp to Buy to Date

Prime Minister David Cameron has today announced that over 6,000 people have applied for a mortgage through the Help to Buy mortgage indemnity scheme in the three months since it was launched.

Figures published in November showed that 2,000 applications were made in the first month of the scheme and the number has more than trebled since then.

In total, almost £1bn in new homeowner loans will have been advanced once pending applications are approved. So far, nearly 750 homeowners have completed their purchases through Help to Buy 2.

The average Help to Buy customer is looking to purchase a home worth £160,000 and faces monthly repayments of around £900. The average household income of £45,000 means Help to Buy mortgages, on average, represent 23 per cent of borrowers’ gross income.

Cameron says: “Too many people have found themselves frozen out of the market in recent years as a result of the size of deposit required.

“That is why as part of our long-term economic plan we introduced the Help to Buy scheme, so hardworking people with sufficient earnings can get on, fulfill their aspirations and enjoy the security of owning their own home.

“In less than three months, the scheme has already helped thousands of people.”

If you would like to know more about the Help to Buy scheme, why not call one of our qualified mortgage advisers who would be more than happy to review your financial requirements. Please call us on 01489 580020 or email us via our “contact us” page.

The Help to Buy – equity loan scheme gives first time buyers and next time buyers the opportunity to purchase a new build home with the help of an equity loan guaranteed by the government.

Help to BuyYou buy a minimum 80% equity share and, as part of that, you’ll need to be able to provide a deposit of at least 5% of the property value from savings or from some other source (like a gift from a relative).

An equity loan of up to 20% of the property value will be provided through Help to Buy. It’s interest-free for 5 years. After that, you pay an annual fee of 1.75% on the amount of the outstanding loan. The fee will increase each year by inflation (Retail Price Index (RPI)) + 1%.

You can start repaying the help to buy equity loan after you’ve owned the home for a year, but you’ll need to be able to pay a minimum of 10% of the property value at the time of repayment.

When you want to sell your home, you’ll need to repay the percentage equity loan that is still outstanding. So, for example, if you originally bought 80% of the property and you hadn’t repaid any of your equity loan, your repayment on selling would be 20% of the market value at the time when you sell.

For more information, please call one of our qualified advisers for further information on 01489 580020 or via the “contact us” page with your requirements.

Am I eligible to buy a home through Help to Buy equity loans?

  • You must be at least 18 years old
  • There is no maximum household income level
  • You will normally require at least a 5% deposit of the full purchase price
  • You must take out a mortgage which will need to be for 25% or more of the full purchase price
  • If a home owner already you must have sold your current home before or at the point of completion on your Help to Buy home
  • You cannot rent out your existing property to buy a second home through Help to Buy
  • Part Exchange is not available through this scheme
  • You cannot sublet your Help to Buy home
  • You cannot buy a home on sale for more than £600,000
  • You must be able to prove you can afford the mortgage repayments and other outgoings on the home you wish to buy.

Call us on 01489 580020 and we can take you through the initial help to buy affordability calculator which will determine whether the property is sustainable long term.

Help to Buy

Help to Buy – Equity loans

The Help to Buy equity loan scheme gives you the opportunity to purchase a new build home with the help of an equity loan guaranteed by the government.

with hep to buy you purchase a minimum 80% equity share and, as part of that, you’ll need to be able to provide a deposit of at least 5% of the property value from savings or from some other source (like a gift from a relative).

An equity loan of up to 20% of the property value will be provided through Help to Buy. It’s interest-free for 5 years. After that, you pay an annual fee of 1.75% on the amount of the outstanding loan. The fee will increase each year by inflation (Retail Price Index (RPI)) + 1%.

You can start repaying the equity loan after you’ve owned the home for a year, but you’ll need to be able to pay a minimum of 10% of the property value at the time of repayment.

When you want to sell your home, you’ll need to repay the percentage equity loan that is still outstanding. So, for example, if you originally bought 80% of the property and you hadn’t repaid any of your equity loan, your repayment on selling would be 20% of the market value at the time when you sell.

For further details on Help to Buy please call park gate on 01489 580020 or email us at quotes@parkgate.net with your requirements

 

Mortgages
life insurance
home insurance
equity release

We offer whole of market advice for all types of customers, whether you are a first time buyer, home mover or looking to purchase a buy to let property. Being independent we are able to offer impartial advice from the whole of the market to ensure you get the product that suits your financial needs.

Whether you are looking to protect your mortgage payments or your family, we provide independent advice for life insurance, critical illness cover and income protection from a wide range of providers.

Buildings Insurance is a requirement when you complete on a mortgage the cover is to provide security to the lender, the insurance covers the main structure of your home. It will cover you for subsidence, storm, flood, fire or smoke damage and cover the costs of rebuilding or repair.

Equity release is a way of releasing cash from your property, either through selling a percentage to the reversion company or taking a mortgage on it, while allowing you, the homeowner to continue living there as long as you wish.