Help to buy scheme enquiry---do you need to get a mortgage to get the 20% gov backing

fung

Hi,

got an issue related to my parents, first time buyer who have saved for many years and have now managed to get a big deposit.

but the issue is that the price of a family home is still greater then the deposit they have managed to save

I know most people would say that if you have save such a big deposit why not just go to bank and get mortgage for the remaining amount,

the issue is their age, asking bank for a mortgage at 58 years old seems to be costing a fortune for the repayment which they would not be able to repay

therefore they are wondering if they can still get help using the help to buy scheme as if they can get the 20% backing they will be able to buy a property

any advice or suggestion would be helpful

thanks in advance

martinsurrey

No, the scheme gets people access to up to an additional 20% deposit, provided they have a minimum of 5% themselves, but purchaser deposit + gov deposit is capped at 25%.

So everyone on it will have a 75% mortgage.

Fire_Fox

Do they have decent pension plans? If they do they might be able to get a longer mortgage, if not maybe they'd be better forgetting becoming homeowners and addressing their pensions.

Do they need a family home at 58, might they be better off with a modest flat? Repairs and maintenance are done for you with leasehold properties, you just pay a monthly service charge. My parents purchased their 'retirement' flat at 50ish, actually just a regular apartment that is super practical for having guests and even wheelchairs (wide corridors etc). I thought they were a bit mad at the time but they may never have to move again and they have few worries about maintenance and security (they travel extensively).

http://webarchive.nationalarchives.gov.uk/+/http://www.hm-treasury.gov.uk/10012.htm
https://www.gov.uk/affordable-home-ownership-schemes/overview

fung

thanks for the reply, i guess i can consider that option for them

would share ownership be feasible??