Residential Property
Help to Buy
Residential Property
Help to Buy
Residential Property
Help to Buy
Residential Property
Help to Buy
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Helping you with Help to Buy

Like many other first time buyers, have you been struggling to get onto the property ladder? Finally, help is at hand with the governments Help to Buy scheme.

What is the Help to Buy Scheme?

The government has put in place a new Help to Buy scheme which allows first time buyers to only put down a 5% deposit and apply for a 95% mortgage on property that have a value up to £600,000.

We want to help first time home buyers too!

It’s not just the government who is helping first time home buyers – The Law Shop Online is here to help you too!

To make sure that your legal costs are kept manageable we offer fixed fee conveyancing prices – meaning no hidden surprises. Also, each Parent Pack we offer has a free Parent Loan Agreement – usually £200 + VAT. All this has been designed to get you on the property ladder and a proud homeowner.

First time?

First time buyer guide

Taking the first step on to the property ladder can be a scary and daunting experience, what with all the obstacles and processes that you have to work your way through. That is why we have developed our first time buyer guide.

What does the first time buyer guide include?

The guide covers everything you could possibly need to know about the help to buy scheme. Outlining the steps involved in buying a house, covering everything from signing contracts to the much anticipated move in day! All this can be yours by simply clicking here.

I thought the Help to Buy scheme had been around for ages, what has changed?

 

It is easy to get confused, but there are two different Help to Buy schemes available. One is a shared-equity programme which has been running since April 2013. This only involves property which are new builds, where you get 20% equity loan from the government. The other is what is known as a mortgage guarantee scheme. With this option you can buy any type of house and not just those that are new builds, up to the value of £600,000 with a 95% mortgage from a participating bank. This means that you only have to come up with 5% of the deposit and the government will indemnify the lender against the loss of up to 15%.

Which scheme is best for me?

 

Both schemes are planned to last for at least 3 years. The shared-equity programme offers cheaper initial payments and this is because the equity loan is interest free for the first 5 years. However, please bear in the mind that when it comes to selling your property, you will have to repay the 20% of the selling price of your home. What this means is if the value of your house goes up, you will not benefit from this. The other scheme, is great if you don’t want to buy a new build and although initial payments will be higher, you can enjoy the full value of your house after re-sale. Participants for this option have to meet very strict criteria, such as no missed loan payments and no CCJs.

Can only first time buyers apply?

 

The simple answer to this is no. Help to Buy schemes are there for people who not only want to get on the property ladder but to also move up – as long as you don’t exceed £600,000. However, there is other criteria that you need to meet, for example, this must be the only property you own in the whole world. If you wish to buy a second property after you’ve opted in with Help to Buy, the loan should be repaid first.

Can I only buy on my own?

 

No. You can buy with someone else but you both have to meet the criteria set. A deed of release will be needed if one of you wishes to sell their share of the property.

Can I swap from Help to Buy into a Buy to Let?

 

This is a viable option – however the equity loan or mortgage guarantee needs to be paid first. If either are in place on a property it cannot be let out. There are a few expectations that can be talked through with a Help to Buy agent.