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The What, Where, When and How of the Help to Buy Scheme

30 Sep 2013
The What, Where, When and How of the Help to Buy Scheme


The second phase of the Help to Buy Scheme is aimed at helping people get onto the property ladder

David Cameron announced on Saturday night that he is
bringing forward the second phase of the Help to Buy scheme to help people get
onto the property ladder.

It is widely
expected that this scheme will cause a high demand, so how do you beat the
crowds?  Here we give you the basic run-down of the scheme and how we can help.


A scheme to help thousands of people buy their own home will be launched
next week.

Under the new mortgage guarantee scheme, the buyer would only need a 5
per cent deposit on mortgages up to a maximum value of £600,000 for new or
existing homes.


Several lenders will be offering the new Help to Buy mortgages, ranging
from 80 to 95 per cent of the property’s value.

The government and the lender then jointly guarantees up to the next 15
per cent of the property’s value, in return for a fee paid for by the lender.


The scheme was due to start in January 2014 but the government has
announced that people will be able to start applying for the new mortgage
guarantee from next week.

To be able to offer the guarantees ahead of schedule, the government
will be allowing lenders to start writing loans that will become part of the
scheme once it opens in January.


There are several lenders who have signed up for the scheme.  You can ask an independent mortgage broker
for advice on the best lender to suit your needs and if you qualify.

Here are 4 things you need to
know about whether you can take advantage of this scheme:

  1. Only
    repayment mortgages will be offered under the scheme.
  2. There will
    be tough checks to make sure buyers can afford their mortgage payments and the
    borrower’s income will be verified.
  3. The scheme
    will not include interest-only or self-certified mortgages.
  4. The new
    mortgages will not be available to people with a history of difficulties making
    debt repayments.



Watch this space for more information about the Help to Buy
Scheme as more information is released or follow us on Twitter @Northfieldslive
or Like us on Facebook to keep track of updates.