Government help to buy needed?

JPERKINS25

Hi,

I am a first time buyer looking to purchase a house for around £150,000 paying £30,000 deposit so 20%ltv. However when reading up on the government help available I couldn't work out if it would be beneficial or if I could use it. It only says about 5% deposits so does that mean if you have a larger than 5% deposit then it doesn't apply, or will I be able to use the mortgage guarantee scheme to effectively increase my Ltd rate so cheaper mortgage?

Alternatively if I just pay the 5% and use mortgage guarantee to get to the 20% would I be offered the same rate as if I paid the full 20% myself? In which case surely would I be better doing that and keeping the remaining money aside for a rainy day or paying the mortgage off earlier?

Hope that makes and any info would be appreciated

Thanks

Toptom1

Don't understand why you would want help to buy when you already have 20%. With help to buy the government would give you a cheap loan you have to pay back for the shortfall too 20% with a 5% deposit but must be paid back in 5 years I think as well as paying the mortgage. The biggest thing as well is that you will end up paying a far higher variable rate so it doesn't work well for you. Help to buy is more ideal for renters. It's a scam really. Use money super market to compare morgages

stator

No, HelpToBuy mortgage guarantee does not give you very good interest rates.
If you use a 95% mortgage with HelpToBuy the rates are still 5-6% on a long term fix.
Use a mortgage comparison website and see for yourself.

chanz4

you payback a % of the house property when you pay it off in 5 years or before

kingstreet

You are mixing the two different elements of HTB.

Equity Loan on newbuilds increases your deposit.

Mortgage Guarantee simply increases the availability of 95% mortgages.

I suggest you speak to an independent broker to clarify how things work.

amnblog

JP - both you and the first two reply posters are not clear on the Help to Buy Schemes.


There are two schemes:


The mortgage guarantee scheme where mortgages can be raised up to 75% on new and previously occupied properties. The Government is 'underwriting' these mortgages to encourage lenders to lend up to 95%.


The equity loan scheme is available on selected newly built property only with deposits from 5%, mortgages to 75% and up to 20% of the property value lent by the Government interest free.


If you would like to see our one minute videos on each scheme please PM me.