Help to Buy from The Heaton Group
The Help to Buy scheme was released to provide first time buyers with a viable and affordable way to purchase their first house. The scheme cannot be used to purchase a second home or to purchase a buy to let property. The scheme helps first time buyers in the property market with such steep price rises over the last 20 years to get on the ladder instead of being priced out by other property investors.
Since its inception in April 2013, the Help to Buy scheme has been a lifeline to those who have felt like they were unable to buy their first property. While the current scheme ends in 2021, there are plans to at least extend the scheme or change it slightly to ensure it keeps going.
How does it work?
Provided the buyers can provide a 5% deposit, the first 20% of the property price is then funded by the government in the form of an interest free loan (for the first 5 years) up to the value of 20% of the property price, but not on properties worth over £600,000. The buyers would then have to get a mortgage to cover the remaining 75% of the property value.
This provides buyers with a great deal more flexibility as it treats the deposit as 25% rather than the traditional 5% or 10% that mortgage lenders typically experience. It allows first time buyers to get a more competitive mortgage rate as a result. There is a negative to this though, as the government will take the equal amount to percentage that you’ve borrowed if you sell the property at a later date. There is the option to pay off the equity loan early, however only if it is a minimum of 10% of the property value.
Why the Heaton Group is part of the scheme
Typically, The Heaton Group has worked together with Investors/Landlords and owner occupiers. We believe that by partnering for this scheme we will further expand our offering for the owner occupier market. We’ve had a recent influx of people wishing to buy their first property – this is a result of months of work to ensure we provide the very best for those looking to work with The Heaton Group.
Because we have been developing properties in high demand areas, we’ve got a wide array of potential properties for those looking for their first property. The help to buy scheme should help potential homeowners with that.
For more information on the Help to Buy scheme then please get in touch on 01942 251945 or contact us via email on firstname.lastname@example.org