A mortgage supported by the Help to Buy: mortgage guarantee scheme works in
exactly the same way as any other mortgage except that under the scheme the
Government offers lenders the option to purchase a guarantee on mortgage loans.
Because of this support,
lenders taking part are able to offer home buyers more high-loan-to-value mortgages (80-95%).
You will still be fully responsible for your mortgage repayments. So if you
have a 5% deposit, you will need to take out and pay back a 95% mortgage.
A mortgage under the Help to Buy: mortgage guarantee scheme works like any
other mortgage. Your lender will check that you can afford the mortgage and that
you do not have a history of payment difficulties.
To qualify for a mortgage supported by Help to Buy: mortgage guarantee:
- the property you are purchasing could be an existing or new-build home in
the UK, priced up to £600,000
- you mustn’t own any other property anywhere in the world at the time you buy
your home supported by the Help to Buy: mortgage guarantee scheme
- your mortgage must be a repayment one, not interest only. Offset and
guarantor mortgages are also excluded from the scheme
- you can’t let out the property to somebody else
- your mortgage can be taken out by an individual or individuals but not by a
- you cannot use the mortgage guarantee scheme with any other Government
scheme such as Help to Buy: equity loan or shared ownership. Your deposit for
the property can’t come from a government scheme either
- you don’t have to pay any additional fee to Government to get a Help to Buy