In 2013, during the aftermath of the credit crunch, the UK Government introduced a scheme in aid to try and get the property market kickstarted again. This scheme was called Help to Buy; its mission was to assist First Time Buyers in Manchester take a step up the property ladder.
Confidence crept back into the market once Help to Buy was introduced, however, some home owners were still left a little wary. Even lenders were still being cautious with who they lent to and how much they gave out.
There are multiple different Help to buy schemes, some have stuck around since 2013, others have not. One of most popular Help to Buy schemes is called the Help to Buy Equity Loan, you can still access this scheme now.
If you are a First Time Buyer in Manchester, the Help to Buy Equity Loan scheme could be a great way to get yourself onto the property ladder. First of all, to access the Equity Loan scheme, you must be applying for a mortgage for on a newly built property and you must be a First Time Buyer. You used to able to access the scheme as a home mover, however this changed as of December 2020.
At application point, you must have a deposit of 5% or more and then the Government will loan you up to 20% to make up the total of a 25% deposit. For example, if you have a 10% deposit, the Government will loan you 15%; you have 7% they loan 18% etc.
This Equity Loan is a loan remember, it’s not free money. This means that the loan will have to be paid back on top of your 75% mortgage. You get 5 years to pay back this loan interest-free, after these 5 years, you will start gaining interest on the remaining amount which starts at 1.75%.
You may have already accessed the scheme and have reached the 5 year period for your interest-free loan. If you haven’t paid off your Equity Loan, you may find the help from an expert Help to Buy Mortgage Advisor in Manchester extremely useful as you may need to reorganise your repayments.
Through Remortgaging in Manchester, it may be possible to combine your remaining mortgage amount and your equity loan amount into one set of monthly repayments.
Again, if you are struggling to meet your repayments, it may be a good idea to speak to a professional Remortgage and Help to Buy expert in Manchester today.
The Help to Buy Shared Ownership was brought into place to allow homebuyers to purchase a percentage a mortgage and then pay the rest back with rent. The share percentage of the home that you have to buy must be between 25-75%, whatever percentage that remains on the property is owned by the housing association.
This means that you share the property and you don’t own all of it. The percentage of the property that you own can be increased at a later date. As a Mortgage Broker in Manchester, we usually find that people increase their share in the home once they have settled in or when they have a little more money.
Are you in need of Help to Buy Mortgage Advisor in Manchester? If so, we are here to help, we have been helping struggling customers secure Help to Buy mortgages for many years now and know exactly how to guide you through the process in a fast and friendly way.
We are available from 8am – 10pm, 7 days a week, so don’t hesitate to get in touch with us for expert Help to Buy Mortgage Advice in Manchester.