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Help to Buy & Equity Loan Remortgage Advice in London

Help to Buy Mortgage Advice in London

Market Update: Help to Buy Equity Loan & Shared Ownership

A Help to Buy introduction

In the time period that followed the credit crunch, during 2013, the UK Government introduced a new mortgage scheme with the intention of strapping a rocket to the property market and hoping to see it soar once again. This new scheme was called Help to Buy and its mission was to assist First-Time Buyers in London in finding their footing on the property ladder.

At long last, thanks to Help to Buy, there was confidence in the market once again. Things were not completely normal, however, as homeowners and lenders alike were still left a little cautious. Mortgage lenders were being very careful with who they lent to and how much they gave out to borrow.

There are multiple different Help to Buy schemes, with some going strong since 2013, and others that have not. One of most popular Help to Buy schemes is called the Help to Buy Equity Loan, a scheme that is still available to this day for customers to take advantage of if they need to.

Help to Buy Equity Loan

If you are an inexperienced First-Time Buyer in London, the Help to Buy Equity Loan scheme could be an incredibly helpful way to get yourself onto the UK property ladder. There are requirements, but they are quite straightforward;

  • You must be applying for a mortgage for on a newly built property.
  • You must be a First-Time Buyer. You used to able to access the scheme as a home mover, however this changed as of December 2020.
  • At application point, you must have a deposit of 5% or more.

It’s at this point that the Government will loan you up to 20% to make up the total of a 25% deposit. For example, if you have a 10% deposit, the Government will loan you 15%; you have 7% they loan 18%, and so the pattern continues.

Deposit & Equity Loan Estimates – Londonmoneyman

It is very important to remember that this Equity Loan is a loan and not just free money. This means that the loan will have to be paid back on top of your 75% mortgage. You get a period of 5 years to pay back this loan interest-free, though after these 5 years, you will start gaining interest on the remaining loan amount, starting at 1.75%.

Remortgage for your Equity Loan Repayment

You may have already accessed the scheme and have reached the 5 year period for your interest-free loan, unable to pay off the remaining balance before interest accrues. You may find the help from an expert Help to Buy Mortgage Advisor in London extremely useful as you may need to organise your repayments via the route of a Remortgage.

In taking out a Remortgage in London, it may be possible to combine your remaining mortgage amount and your equity loan amount into one set of monthly repayments. Once again, if you are struggling to meet your repayments, it may be worth your time speaking to a professional Remortgage and Help to Buy expert in London.

Shared Ownership

The Help to Buy Shared Ownership scheme was introduced as a means of allowing homebuyers to purchase a percentage of a mortgage and then pay the rest back with monthly rent repayments. The share percentage of the home that you buy will likely be between 25-75%. The remaining percentage on the property belongs to the housing association.

This means that you share the property and you don’t own every bit of it. The percentage of the property that you own can be increased further down the line. As an experienced Mortgage Broker in London, we usually find that people increase their share in the home once they have settled in or when they have more money spare to do so.

Help to Buy Mortgage Advice in London

If you are in need of Help to Buy Mortgage Advisor in London, our team are here to help. As a company we have been helping struggling customers secure Help to Buy mortgages for many years now and know how to guide First-Time Buyers through the mortgage process.

Our advisors are available from 8am – 10pm, 7 days a week, so don’t hesitate to Get in Touch with us for expert Help to Buy Mortgage Advice in London.

Londonmoneyman.com & Londonmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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