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Help to Buy Mortgage Advice in Cambridge

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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:

 

Help to Buy: Equity Loan scheme Example

 

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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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.

What our customers say

Common mortgage
questions

You will need to have at least 5% of the sale price of your new build property in Cambridge. The Government will then loan you up to 20% to the properties value.

Your initial mortgage consultation will usually take around an hour. A Mortgage Advisor in Cambridge will then do some research and recommend a potential mortgage for you, which you can then choose to proceed with or decline – There is not any obligation!

As your dedicated Mortgage Broker in Cambridge, we will gather some information about you and your personal circumstances by carrying out a Fact Find. The next step would be looking to obtain an Agreement in Principle which can be granted after a credit check. Once your Mortgage Advisor in Cambridge has gathered all the appropriate information, and a valuation of the property has been undertaken, a formal mortgage offer can then be issued.

To avoid possible disappointment, we recommend you obtain an Agreement in Principle before you begin viewing properties in Cambridge. At the very latest you should obtain one prior to making an offer to assist your bargaining position.

An Agreement in Principle typically lasts around 30 to 90 days depending on the Lender you have gone with. If your Agreement in Principle expires, you can always get another one.

If you are interested in things such as debt consolidation or home improvements, then you may be eligible for a second mortgage. Second mortgages may also be relevant if you are hoping to use it for yourself, a family member, a holiday home, or a Buy to Let mortgage.

If you have a poor credit history you may still be able to obtain a mortgage, but this will often require a higher deposit than you would normally need, sometimes around 15% of the property purchase price.

You are able to progress with a possible mortgage whilst Self Employed in Cambridge once you have submitted at least one years’ account. Most lenders use your salary plus dividend to calculate what your maximum mortgage, could be. Other lenders may opt to go off your net profit.

For an employee to prove income you would need the last 3 payslips and if you are Self Employed you will need the last 2 years of accounts. You will also need to provide us with proof of ID, address, and 3 months’ bank statements.

Our free consultations in Cambridge normally take around 1 hour. A Mortgage Agreement in Principle can usually be sorted within 24 hours of the appointment. A formal mortgage offer takes about three weeks on average, depending on the situation.

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We make it so easy!
Our 4 step process

Step 1

Give us a call and a Mortgage Advisor in Cambridge will recommend the best Help to Buy scheme based on personal circumstances.

Step 2

Enjoy finding your dream home in Cambridge

Step 3

Make an offer on the property and once accepted, we will progress your mortgage application.

Step 4

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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