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Help to Buy Mortgage Brokers

It can be difficult to get your first step on the property ladder as a first-time buyer, but with the Help to Buy scheme, it could be easier than you think. For many people, saving up a deposit is the difficulty in buying a home but the Help to Buy equity loan makes it possible with a smaller deposit. With as little as a 5% deposit, you could be able to buy a brand new property and become a homeowner for the first time. 

A Help to Buy mortgage broker can offer advice and guidance throughout the mortgage process. Town & Country Mortgage Services can provide you with free, comprehensive advice to help you make the right decision for your circumstances. 

We have an experienced team of brokers as well as helpful online tools, such as affordability calculators and repayment calculators, to make the process of buying your home as smooth and easy as possible. Each step of the way, you’ll have access to a team of professionals who will make your purchasing experience smooth and hassle-free. 

The Help to Buy Scheme

The Help to Buy scheme works as an equity loan, where the government lends first-time buyers money to help them buy a newly-built property. There are certain criteria which have to be met in order to qualify for the scheme – the purchase price must be less than £600,000 and applicants can borrow 20% of the purchase price interest-free, for the first five years, providing they have a minimum of a 5% deposit. For those buying a property in London, you can borrow up to 40% of the purchase price. 

This scheme will be extended from 2021 until 2023 to help people get on the property ladder and buy a home. However, the government has confirmed that this extension will be restricted to first-time buyers purchasing a newly built home only. From 2021, there is also going to be a regional price cap – this could reduce the maximum value of properties purchased through this scheme. 

Providing you can save up the 5% deposit, the government can help you with an equity loan of up to 20% of the property’s value, or up to 40% for London-based properties. You will still need to qualify for the remaining amount via a mortgage though. There are several lenders who are participating in the scheme, including Barclays, NatWest, Halifax and Santander. A Help to Buy mortgage broker can discuss with you which lender can provide you with the best mortgage deal, based on your eligibility and affordability. 

Is the Help to Buy Scheme Right for Me?

As of 2021, the government has restricted this scheme to first-time buyers, so if this is your first time buying a property, you can benefit from a lower deposit in order to find your dream home. There are many advantages to this equity loan scheme – it makes brand new homes available to you, which may otherwise have been out of your budget, plus the loan is interest-free for the first five years. 

Using the Help to Buy loan could work out cheaper than renting and if you’re eligible, you’ll pay a lower deposit on your home. It’s important to do an affordability check to ensure you can comfortably make your repayments each month – you can use our online affordability calculators, or you can speak to one of our brokers who can perform an affordability check for you.

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There are price limits on homes you can buy with an equity loan. The limit is different for each region in England.

Region

Full property price limit
East£407,400
East Midlands£261,900
London£600,000
North East£186,100
North West£224,400
South East£437,000
South West£349,000
West Midlands£255,600
Yorkshire and The Humber£228,100

The Help to Buy Process

In order to apply, you need to reserve your home with the house builder and pay the fee (which should be no more than £500) before contacting a Help to Buy agent to help you in applying for the loan and check your affordability. You also need to apply for a standard mortgage to help you with the remaining amount of the purchase price – a Town & Country Mortgage Services broker can help you with this step and ensure that all of the legal documents are completed properly.

If you are buying a second home or a buy to let property, you can’t use the Help to Buy scheme to fund your purchase. Likewise, the Help to Buy scheme can’t be used to take out a repayment mortgage or for a property outside of the set price limitations. If you don’t want a new build property, then this scheme won’t be a good fit for you as it’s restricted to new builds only. The limited number of lenders may also be a stumbling block for some people – your broker can help you determine if the Help to Buy equity loan is a good fit for your requirements. 

While some people may have been saving towards a Help to Buy ISA, others may not have set this up prior to looking for their home. A Help to Buy mortgage broker can assist you with this and many other aspects of the mortgage process. Town & Country Mortgage Services have helped countless people find a suitable mortgage for their first home purchase, so we have the experience required to help you with any questions you might have. 

Compare the Best Mortgage Rates

A great way to see what you’re able to borrow is to use an online calculator – Town & Country Mortgage Services have free online calculators that can help you determine the type of property you’re able to purchase. Town & Country Mortgage Services are award-winning, FCA-registered brokers who can help you find the ideal mortgage deal for your home. We have access to the whole market and will guide you through the mortgage process under the Help to Buy scheme. 

The loan is interest-free for the first five years – you’ll pay just £1 in monthly management fees – then from year six, you’ll continue to pay the £1 management fee as well as a monthly interest fee of 1.75% of the loan. From year seven onwards, the interest fee will rise each April in accordance with the Retail Price Index, plus 1% until the loan is repaid. The loan will only need to be repaid in full if you pay off your mortgage, you decide to sell your property, or the loan term comes to an end. However, you can choose to pay off the loan at any time in full or in 10% chunks before the loan period ends. 

Applying for a mortgage is a daunting process but we’ll ensure that any questions you have are answered as soon as possible by experienced professionals for an efficient and smooth home buying experience. We’ll compare the best rates to ensure a great deal for you, as well as providing you with guidance each step of the way. 

Speak to one of our award-winning mortgage advisors 

If you need guidance on the help to buy scheme or you’re ready to buy your first property and you want to speak to a help to buy mortgage advisor, our friendly team can help. Our experienced brokers can talk you through your options, assess your circumstances and help you find the right mortgage for your home. Call us today to speak to us about the help to buy scheme or for guidance as a first-time buyer.

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