Help To Buy - HELP

HannahRebecca

Hi All,

I'm trying to work out the best way to buy my first home and I'm a little lost between the Help to Buy Mortgage where you have a 5% deposit and the government add 20% which you then repay or the Help to Buy ISA where the government will add £50 for every £200 saved per month to go towards a deposit.

I was wondering which of these schemes is best in people's opinions and also if it's possible to use both together?

Thanks In Advance

ncfc1980

They're entirely different schemes. The IS A is purely and simply a saving scheme towards a deposit, where the government contribute £50 toward every £200 saved (with certain minimum and maximum criteria, which escape me at present). Once saved you can use as you see fit toward a deposit and mortgage of your choice.

The help to buy 1 scheme a specific mortgage where the government in essence give you an equity loan with interest repayments due after 5 years.

stator

You use the Help to Buy ISA to save up. When you have saved up enough you can then buy a house with either H2B Equity Loan or H2B Mortgage Guarantee. Equity Loan is for new builds only where the government lends you 20%. I don't like that scheme. H2B Mortgage Guarantee is where the government sells an insurance policy to the bank, it doesn't affect you at all, you just apply for a mortgage and repay it normally. It's available for old houses.

cakeforbrains

I think it's confusing to people sometimes because the government seem to be using 'Help to Buy' as a brand, in effect, that has a number of products.

HannahRebecca

stator wrote: »

You use the Help to Buy ISA to save up. When you have saved up enough you can then buy a house with either H2B Equity Loan or H2B Mortgage Guarantee. Equity Loan is for new builds only where the government lends you 20%. I don't like that scheme. H2B Mortgage Guarantee is where the government sells an insurance policy to the bank, it doesn't affect you at all, you just apply for a mortgage and repay it normally. It's available for old houses.

So based on this you're saying that I can use both the ISA and the Help to Buy Mortgage?

What are the terms with the H2B Mortgage Guarentee? I've not heard of this one?

libf

http://www.helptobuy.org.uk/mortgage-guarantee/how-does-it-work

dgtazzman

http://www.helptobuy.org.uk/mortgage-guarantee/how-does-it-work

Note that although in theory the mortgage guarantee scheme will run till December 2016, in Scotland they have already run out of funds for it, so the question is if the other regions will have the same issue, in effect ending the scheme early.

I think I saw somewhere applications have to be in quite a bit before the cut off date, but not sure on that...

EDIT: blast, got beaten to the link ^^