Here is our guide for everything you need to know…

What is it?

There are two mains schemes;

1. Equity Loans – This is where the government lends up to 20%of the value of a new-build home.
2. Mortgage Guarantees – This is where the government agrees to cover a percentage of your mortgage, if you only have a small deposit (minimum 5%). This option is now available on new-build and pre-owned properties.

Who is offering a Help To Buy mortgage?

Only a few lenders have signed up to provide the 95% mortgages and they are;

• RBS
• NatWest
• Halifax
• HSBC
• Santander
• Lloyds
• Virgin Money
• Aldermore

How much will the mortgages cost?

They will vary with the lender you choose to go with, for example, one provider is currently offering a 2 year fixed rate of 4.99% or a 5 year fixed rate at 5.49% with a 5% deposit.

What are the risks?

One of the main risks is the interest rates, there are no guarantees that they won’t increase. It is likely that the interest rates will increase which could impact on the borrower’s monthly payments, which in turn could affect their monthly cash flow.

Key points;

• You will need to have a deposit of at least 5% to be accepted for the scheme
• The scheme is available for all house buyers (excluding buy to let)
• The scheme is running until December 2016.
• The maximum home price to qualify for the scheme is £600,000

How do I apply?

The best way to find out more is to contact or visit an independent mortgage advisor or Help To Buy lender, or come and have a chat with one of our sales advisors. You can also find out more about Help to Buy on our website.