Help to Buy – Mortgage Guarantee
Whether you are a First Time Buyer or looking to move home, the government-backed Help to Buy Mortgage Guarantee Scheme could be of assistance.
A mortgage supported by the Help to Buy: mortgage guarantee scheme works in exactly the same way as any other mortgage except that under the scheme the Government offers lenders the option to purchase a guarantee on mortgage loans.
Because of this support, lenders taking part are able to offer home buyers more high-loan-to-value mortgages (80-95%).
Key Scheme detail
- the property you are purchasing could be an existing or new-build home in the UK, priced up to £600,000
- you must not own any other property anywhere in the world at the time you buy your home supported by the Help to Buy: mortgage guarantee scheme
- your mortgage must be a repayment one, not interest only. Offset and guarantor mortgages are also excluded from the scheme
- you can’t let out the property to somebody else your mortgage can be taken out by an individual or individuals but not by a company
- you cannot use the mortgage guarantee scheme with any other Government scheme such as Help to Buy: equity loan or shared ownership.
- Your deposit for the property can’t come from a government scheme either you don’t have to pay any additional fee to Government to get a Help to Buy supported mortgage the size of the mortgage you apply for must be less than 4.5 times your income.