Help to Buy Mortgage Schemes Available in Liverpool
In a bid to kick-start the property market, the Government launched various Help to Buy schemes. In any case, this started after the credit crunch of the mid-2000s.
Most of the schemes undertaken were under the banner of “Help to Buy”. They got designed to get people onto the property ladder. Putting these schemes under the title of Help to Buy did cause some confusion, so below well explain how they work.
The Forces Help to Buy scheme was introduced in 2014 off the back of the Help to Buy Equity Loan scheme. The method undertook a 3-year pilot to determine whether or not it would be worth keeping in place. These first 3 years were successful, so the Government extended the deadline/review date to December 2022.
The scheme got introduced to help regular armed forces personnel get onto the property ladder. If you fit within the scheme’s criteria, it could be a great mortgage option for you to consider.
Here’s an insight from Malcolm, who is an experienced Mortgage Advisor in Liverpool and the actual “moneyman” himself:
To put it simply, the Help to Buy equity loan allows you to make up a 25% deposit. Once you have your 5% deposit (or more than 5%), the Government will help you out and loan you the remainder to make up the 25%. Usually, people take the full 20%.
Your mortgage is only 75%. However, it’s not that simple. People forget that this 20% is not a gift, it’s a loan, and you have you to pay it off within five years of taking out the Help to Buy mortgage. If you don’t manage to pay it off within the deadline, you will start receiving interest on the left sum’s remainder.
Ideally, you would want to start saving up towards this as soon as you complete it. It may be possible to remortgage your home in 5 years to raise capital for this too. If you do not repay the loan after five years of fees, start to apply, and they go up each year. The Government participates in any increase or decrease in the value of the property. Therefore, the possibility that you have to pay back much more than the original amount.
For more Help to Buy Mortgage Advice in Liverpool, get in touch with your Help to Buy Mortgage Advisor in Liverpool today. Receive a free Help to Buy mortgage consultation in Liverpool today.
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