Help To Buy Mortgage Advice
Phase 1 - New Build Homes
With a Help to Buy mortgage, the government will loan you up to 20% of the cost of a new-build home, so you only need to find a 5% deposit and then take a 75% mortgage to make up the rest.
Help to Buy mortgages on new build homes are available to both first-time buyers and home movers on properties with a value of up to £600,000. You will not be able to rent out this property to anyone else; it must be your main residence.
Here is an example of how this type of mortgage works:
| Cost | % | |
| Purchase price | £200,000 | - |
| Government Equity Loan | £40,000 | 20 |
| Deposit (cash) | £10,000 | 5 |
| Your Mortgage Amount | £150,000 | 75 |
If you later sold the property shown in the table above for £210,000, you'd receive £168,000 (80%, from your mortgage and the cash deposit) and pay back £42,000 on the loan (20%). You'd need to pay off your mortgage with your share of the money. |
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Phase 2 - Mortgage Guarantee Scheme
Initially planned to be introduced in January 2014, the Government has brought this scheme forward to October 2013 for both second hand properties and new build properties.
If you're looking to buy a residential home with just a 5% deposit, then the Help to Buy Mortgage Guarantee scheme could be the way forward for you, and we are able to advise on these products.
The Mortgage Guarantee Scheme aims to increase the availability of mortgages for buyers with small deposits. The Government is aiming to provide £12billion in mortgage guarantees.
The Help to Buy Mortgage Guarantee scheme is available:
- On both new build and previously owned properties up to £600,000 in value
- To first-time buyers and existing home-owners
Cherry Tree Financial provides Help To Buy mortgage advice either face to face in the York and Yorkshire area, or by telephone anywhere in the UK. Please contact us to find out more about how we can help you.
Mortgage Calculator
Our basic mortgage interest calculator is designed to give you an idea of what your monthly payments might be for your next mortgage or remortgage.
The results shown are not exact and precise, and are to be used only as a rough guide. For a fully accurate and considered quotation for a product best suited to your needs please contact us for a consultation.
Mortgage Term
Most people opt for a 25 year term when they take their first mortgage out. However, you can apply for a longer or shorter term. If you go for a longer term, your repayments will be lower, but it will take you longer to pay off the debt and the interest due would be higher. The shorter the term, the sooner you will be mortgage free.