Help to Buy Mortgage Advice in Halifax
Across All Schemes
For some buyers, when it comes to buying their first home or a newly built home, there is a struggle to match the required minimum deposit. The government noticed this and offered a solution to help First Time Buyers afford to move into a newly built property. This was called “Help to Buy”, and it was made to give buyers the boost they needed to begin their mortgage journey.
There are lots of different Help to Buy schemes to wrap your head around, however, there are two that seem to stand out when compared to the rest of them: Help to Buy Shared Ownership and the Help to Buy Equity Loan.
How does the Help to Buy Shared Ownership Scheme work?
The Help to Buy Shared Ownership scheme was made to allow buyers to purchase a share/percentage of a propetry through a mortgage and then pay the rest on rent. For example, you could buy a share of a home (which has to be between 25% or 75%) and then you will have to pay rent on the percentage of the property that you don’t own. This share percentage that you own can be increased, people often raise their shares once they have a bit more money and have settled in.
How does the Help to Buy Equity Loan Scheme work?
The Help to Buy Equity Loan is the most popular scheme. To put it simply, once you make up a 5% deposit, the government will give you an extra 20%, bringing your total deposit to 25%. This means that you are only paying a 75% mortgage. This is extremely useful if you are First Time Buyer in Halifax who is struggling to get onto the property ladder.
It isn’t this easy though, the 20% that the government give you is a loan as well, which must be paid off within 5 years of owning your home. If you are unable to meet the deadline and do not pay it off in time, the amount that you still owe will begin receiving interest. As a Mortgage Broker in Halifax, we have seen a lot of people forget about this and it has come back and caused problems down the line, so you must remember!
Here is an example for a home with a £200,000 price tag:
If the home in the example above sold for £200,000, you’d get £160,000 (80%, from your mortgage and the cash deposit) and you’d pay back £40,000 on the loan (20%). You’d need to pay off your mortgage with your share of the money.
We search 1000s of mortgage deals across a large number of lenders, including:
Reasons to Choose us
Help to Buy Mortgage Advice in Halifax
Here at Halifaxmoneyman, we work solely for you! We are determined to find you the best Help to Buy Mortgage deal that best suits your personal and financial situation. We will go over all of the schemes for you and recommend you with your best Help to Buy mortgage options. We always have your best interests at heart.
Here are some of the most common Help to Buy mortgage situations that we come across:
This makes it possible to buy a home with just a 5% deposit whilst Help to Buy Shared Ownership deposits are typically much lower than buying traditionally.
With a Help to Buy: Equity Loan, the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.
Find out more information about the Help to Buy schemes available to you at Gov.uk
Why should you choose us as your Mortgage Broker in Halifax?
As a Mortgage Broker in Halifax, we assist clients with all types of mortgages, including those under the Help to Buy scheme. Once you make contact with us, we will walk you through the whole process, from start to finish.
If you have already found a new home that you want to buy that falls within the remit of the Help to Buy scheme, we will go through the paperwork with you and even liaise with the home builder or estate agent on your behalf.
Not only will we deal with your mortgage but we can also help if you need advice with regard to surveyors or solicitors.
As part of your initial free mortgage consultation, we will go through all of the figures with you so that you know exactly how much you will be paying each month.
Our free consultation will most likely last around an hour. A dedicated mortgage advisor in Halifax can turn round an agreement in principle within 24 hours of this consultation, with a formal mortgage offer taking about three weeks on average.
A dedicated mortgage advisor in Halifax will carry out a Fact Find to work out what your personal needs are prior to recommending the most suitable mortgage for you. In order to get an Agreement in Principle, you’ll be required to have a credit check. Once you have provided all the relevant documentation and a valuation of the property has been undertaken, you can be formally issued a mortgage offer.
Your free mortgage consultation in Halifax with an advisor will last for roughly around one hour. Once this has been undertaken, they will then recommend a mortgage for you. You’re under no obligation to accept this and have the freedom to walk away still, should you feel that’s the better option.
To avoid being disappointed down the line, we suggest that you obtain an Agreement in Principle prior to property viewings in Halifax. You should obtain one no later than the point before you start making an offer in order to assist your bargaining position.
An Agreement in Principle will most likely last between 30 and 90 days depending on who you take one out with. If your Agreement in Principle expires, come back to us and we’ll get this refreshed for you.
If you are looking at some future financial planning or home renovation like debt consolidation or Home Improvements, you may be eligible for a second mortgage. It can be possible to take out a mortgage on a second property for your own use, for a family member, for a holiday home or even for a Buy to Let.
If you have had a recent history of credit problems a mortgage may still be within reach, though you may possibly be required to put down a higher deposit than usual. We find that this figure is commonly around 15% of the property purchase price.
Once you have submitted at least one year’s accounts to the mortgage lender, you are eligible to get a mortgage. Most Lenders will use a calculation of your salary plus your dividend to determine the maximum mortgage amount you can take out, whereas others may go off your net profit.
You will need to have at least 5% of the sale price to use as your deposit for the new build property in Halifax. The Government will then loan you an additional amount up to 20% to the properties value.
It will typically be the last three payslips for employees to prove their income to the lender and the latest 2 years’ accounts if you’re a Self-Employed applicant. You will also need to provide your mortgage lender with some proof of ID, address and 3 months’ bank statements.
We make it so easy! Our 4 step process
Give us a call and a Mortgage Advisor in Halifax will recommend the best Help to Buy scheme based on personal circumstances.
Enjoy finding your dream home in Halifax
Make an offer on the property and once accepted, we will progress your mortgage application.
We will be here to answer all of your mortgage questions right through till you get your keys.
A telephone call where we can take some initial details and find out about your plan of action.
Enjoy finding a property!
Make an offer on the property you set your heart on – we’ll finalise your figures and help you to get a good deal.
Our mortgage recommendation. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.
Halifaxmoneyman.com & Halifaxmoneyman 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. UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.