bpl solicitors

Help to Buy Scheme

The government backed Help to Buy Scheme was launched in April 2013 and is aimed at getting people moving on the property ladder.

To help you understand this fully and see if this could help you, BPL Solicitors have launched a dedicated website at www.helptobuy.me

The Help to Buy Scheme comes in 2 parts. 

20% deposit towards a new-build property
The first part, launched last month, is aimed at anyone who wishes to buy a New Build Property.  If you have a 5% deposit, then you will be able to get a further 20% as a Government loan.  This loan is interest free for the first 5 years!

Unlike similar schemes in the past, this one is open to anyone buying a new house that is valued up to £600,000, whether you are an existing homeowner or a first time buyer, and also with no limits imposed upon your household income.

Guarantees for small deposit mortgages
The second part will be launched in January 2014 and is the Mortgage Guarantee part of the scheme.  This will apply to all properties, not just new build homes, with, again, a property value limit of £600,000. 

If you only have a small deposit and are having difficulties due to a high loan to value ration, then the Government will give a guarantee to the mortgage lenders for a percentage of the loan.  You would still be required to get the full mortgage amount from the mortgage lender, but they would have the security of knowing that at least part of the mortgage was guaranteed by the Government.