The Help to Buy Mortgage Guarantee scheme is
now launching on the 7th October 2013:
What is it?
Basically the government will be guaranteeing a certain percentage of someone's mortgage to a lender, which will enable the lender to offer 95% mortgages at competitive rates. The buyer will still own 100% of the property.
Therefore you will be able to buy with only a 5% deposit, something that has been restricting the mortgage and housing markets for the last several years.
Who can apply?
To qualify for the scheme, you will need to meet the following criteria:
- Available on resale and new build properties in the UK
- Available to all home movers
- Applies to properties up to the value of £600,000
- Must be a residential repayment mortgage, (not a buy-to-let or interest only mortgage)
- Buyer must meet the lender's normal criteria in terms of what they can borrow, credit score etc
As the government brought the scheme forward by 3 months, not many lenders were prepared for this. However as the weeks go on, more and more lenders will offer products, using an independent broker to find the best deal is a must.
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