What is 'help to buy' ?
How does the 'Help to Buy' scheme offered by some agents work ?
Asked on Aug 15 2014,
Home Finance in UK |
There are two government schemes known as 'help to buy' One props up builders of new build houses by offering a government backed top up loan, the other encourages banks to lend less cautiously by guaranteeing part of the banks mortgage lending. Both encourage buyers to pay more and have more to lose if house prices do not rise.
Web reference: http://https://www.gov.uk/affordable-home-ownership-schem...
Answered on Aug 15 2014,
The Help to Buy Scheme is a government initiative that looks at supporting people who have low funds for deposits etc. There are two parts of the scheme, one is the equity loan which is where you would put a 5% deposit down, the government would then provide a 20% payment so the mortgage value would be 75% left to cover. you would then after a period of time re pay back the 20% government loan. The next scheme is where its a 5% deposit and which provides lenders with support to provide 95% mortgages.
We hope this helps.
Answered on Sep 10 2014,
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