Help to Buy Mortgage Advice in Cambridge
Across All Schemes
During the aftermath of the credit crunch, the government wanted to get the mortgage market back up and running so they introduced Help to Buy. Adding this fuel to the mortgage market brought back a lot of confidence amongst First Time Buyers around the UK. The Help to Buy schemes gave people that boost that they needed in order to start their mortgage application for a new build.
Help to Buy Mortgage Advisor in Cambridge
There are lots of different Help to Buy schemes available, however, there are some more popular than others: The Help to Buy Shared Ownership and Help to Buy Equity Loan. To qualify for any Help to Buy scheme, you will always need a 5% minimum deposit.
Help to Buy Shared Ownership
This Help to Buy scheme lets you purchase a percentage of your property and then pay the rest back as rent. For example, you could buy a share of a property (this has to be between 25%-75%) and then you will have to pay rent on the percentage of the property that you don’t own. Basically, you have a share in the property. It’s important to know that you can increase your share percentage at a later date to own more of the property. Borrowers usually sweep up this option once they have settled in or are perhaps making more money.
Help to Buy Equity Loan
Once you have found a newly built home that you wish to purchase and you have your 5% deposit at the ready, it’s time to get your Help to Buy mortgage application rolling. How the scheme works is that you put forward a deposit of 5% or more and the government will loan you a certain percentage to top the deposit up to 25% (normally 5% from the applicant and 20% from the government).
So your overall mortgage is 75% and you will pay this amount like a normal mortgage, however, the 20% (or what percentage the government loaned you) will be interest-free for the first 5 years of living within the property. If you don’t manage to pay off the loan within 5 years, you will start receiving interest on the remainder of the loan.
Help to Buy – Do You Qualify?
This is where approaching a Help to Buy Mortgage Advisor in Cambridge could become incredibly useful for your Help to Buy journey. We will help talk you through the schemes and check to see whether you qualify for any of them, on top of trying to find you a great deal.
Help to Buy Equity loans are only available on new build homes up to the value of £600,000 and you can only access the scheme as a First Time Buyer.
You mustn’t own any other property at the time you buy your new home with a Help to Buy Equity Loan. Also, subletting and part-exchange is not allowed.
Here is an example for a home with a £200,000 price tag:
It is also important to know that the percentage loaned from the government, is secured as 20% equity in your property. Therefore if your property price increased, so would the amount to pay back on the Help to Buy equity loan. On the contrary, if your property price decreased then the total to pay back on the loan would go down.
So let’s take the example above If the home in the example above sold for £200,000, you’d get £160,000 (80%, from your mortgage and the cash deposit) and you’d pay back £40,000 on the loan (20%). You’d need to pay off your mortgage with your share of the money.
If you are still having trouble wrapping your head around the Help to Buy Equity loan scheme feel free to come and speak to your Help to Buy Mortgage Broker in Cambridge. For more information (including advice on fees and paying back your loan) please download the Government Help to Buy Buyers’ Guide (PDF).
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Reasons to Choose us
Help to Buy Mortgage Advice in Cambridge
Our Mortgage Advisors in Cambridge will always have your best interests at heart, we will walk you step by step through your Help to Buy mortgage and make sure that you feel comfortable with everything that is going on 100% of the time.
Here are some of the most common Help to Buy mortgage situations that we come across:
This makes it possible to buy a home with just a 5% deposit whilst Help to Buy Shared Ownership deposits are typically much lower than buying traditionally.
With a Help to Buy: Equity Loan, the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.
Find out more information about the Help to Buy schemes available to you at Gov.uk
Why should you choose us as your Mortgage Broker in Cambridge?
As a Mortgage Broker in Cambridge, we aim to help applicants with all types of mortgages, including those interested in going down the Help to Buy route. Once you get in touch with us, we will walk you through the whole process, from start to finish.
If you have already found a new build property that you want to make an offer on that falls within the remit of the Help to Buy scheme, we will go through the paperwork with you and even liaise with the home builder or estate agent on your behalf.
Not only will we help you with your Help to Buy mortgage but we can also help if you need advice with regard to surveyors or solicitors.
As part of your free initial mortgage consultation in Cambridge, we will go through all of the figures with you so that you know exactly how much you will be paying each month. We will always try and find ways to save you money, most of the times we are able to as well.
As your Mortgage Advisor in Cambridge, we are here to help you. Get in touch with us today and make a date for your free mortgage consultation.
For a New Build, you will be looking at at least 5% of the property sale price in Cambridge. The Government will kindly loan you up to 20% of the value of the property, but you will pay back the loan from the Government over time.
Firstly, you need to fill out our Fact Find to get an idea of your current personal and financial situation. Next, our team will pass over this information to your dedicated Mortgage Advisor in Cambridge, and they will keep in touch to schedule your free mortgage consultation. You will get asked a series of questions to help build up a profile; this will help them pick out a mortgage deal tailored to you.
Secondly, once the consultation is over, a credit check will carry out, and this will help you obtain an Agreement in Principle. Granted, if you are okay with everything and happy to proceed, we will then ask for some documentation to help strengthen your application.
Lastly, with your Agreement in Principle, submitted evidential documentation and a comprehensive mortgage offer that you’re happy to continue with, you can move onto the last stage – mortgage application submission!
The time scale can alter depending on the Lender but on average, an Agreement in Principle will likely last around 30-90 days.
If you’re Agreement in Principle expire, worry not. It’s an easy process to renew. Speak to one of our Mortgage Advisors in Cambridge or your current Lender to arrange a renewal of your Agreement in Principle.
It may be harder for you to obtain a mortgage with past credit problems, but not impossible depending on circumstances. You may get asked to put down a larger deposit, which will vary depending on your lender.
If you are suffering from bad credit, give us a call, and our advisors will be more than happy to try and help. We have a wide variety of specialist mortgage lenders who may have the perfect mortgage deal for your financial situation.
Whether you’re applying for a mortgage or looking to remortgage, there are a few documents lenders will always want to see during the process. You will get asked to provide some evidential documents to back up your mortgage application. For example, you’ll need things like ID, bank statements, payslips.
Don’t worry if you forget any of these documents listed; your assigned Mortgage Advisor in Cambridge will run through all of this with you, so nothing gets missed.
Your free mortgage consultation in Cambridge can take approximately an hour; within the hour, we take an in-depth look into your personal and financial situation.
Once your consultation gets concluded, we will try to turn around an Agreement in Principle within 24-hours. An Agreement in Principle is essential when making an offer on a property, as estate agents and sellers often accept those who already have an AIP than those who haven’t.
The final step is to submit your mortgage application and wait for a formal mortgage offer. Usually, this will take about 2 -4 weeks – provided the process goes smoothly, and your application is relatively straightforward.
Our Mortgage Advisors in Cambridge job is to gather personal, financial and financial mortgage situation information from you during your free mortgage consultation because they need to build an in-depth understanding of your mortgage needs to try and find you the most suitable mortgage.
Once your consultation is complete, your Mortgage Advisor in Cambridge will begin searching for mortgage products on your behalf to match your personal and financial situation, saving you time and money.
We recommend you get an Agreement in principle before viewing any houses in Cambridge. Doing so may increase your chance of your offer getting accepted and will put yourself in front of other buyers who don’t have an Agreement in Principle in place.
We make it so easy! Our 4 step process
Give us a call and a Mortgage Advisor in Cambridge will recommend the best Help to Buy scheme based on personal circumstances.
Enjoy finding your dream home in Cambridge
Make an offer on the property and once accepted, we will progress your mortgage application.
We will be here to answer all of your mortgage questions right through till you get your keys.
A telephone call where we can take some initial details and find out about your plan of action.
Enjoy finding a property!
Make an offer on the property you set your heart on – we’ll finalise your figures and help you to get a good deal.
Our mortgage recommendation. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.
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UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority. UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.