We are pleased to set out a guide which details three major lending schemes for first time buyers.
Helptobuy.org.uk
Help to Buy Equity Loan (in respect of a new build house only)
· Deposit 5% of purchase price
· Government Equity Loan 20% of purchase price
· Mortgage 75% of purchase price
The Government's flagship ‘Help to Buy’ scheme was launched in the 2013 budget. It will really come into effect next year and is specifically aimed at helping people who can only afford a 5% deposit. The scheme is also available to existing homeowners.
Barclays.co.uk
Barclays ‘Family Springboard’0845 0705 090
· Deposit 5% of purchase price
· Bank provides 95% mortgage
· Family member provides 10% of purchase price which the bank holds in a Helpful Start interest bearing Account
· After 3 years the family member will receive back the 10% deposit, provided monthly mortgage repayments are kept up to date
Lloydstsb.com
Lloyds TSB ‘Lend a Hand’0845 3000 000
Partnership between the bank and the local authorities across England and Wales.
· Deposit 5% of purchase price
· Mortgage 95% of purchase price
· Local authority indemnities 20% - You must check your local authority is participating in the scheme.
All three schemes are there to help first time buyers enter the property market. Whereas the previously required 20% deposits were almost a complete barrier to those concerned, now at last there is real hope for first time buyers. The governments ‘Help to Buy’ scheme has come in for a fair amount of criticism in that there is a view it could cause a property bubble by artificially propping up house prices. Others counter this by saying that we need to have a resilient house market. It really is too early to make such an assumption as the ‘Help to Buy’ scheme will not really have a serious impact until 2014.
For more information or help on this matter, please feel free to contact us by email or phone, or through any of our social media. We'd love to help!
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