A question that’s important to ask about ANY form of loan.
There are an increasing number of loan options on the market, which is making it harder for you as the buyer to know which one is the right one for your personal situation.
A Help to Buy scheme, in short, works like this:
– You need to have a 5% deposit
– The Government will then lend you up to 20% of the property price (up to 40% if you’re buying in London). This loan is interest free for the first 5 years.
– The remaining 75% is then covered by a standard mortgage
Whilst this scheme can be hugely beneficial we must stress the importance of digging a little deeper into what you REALLY need before assuming that this scheme is right for you.
We have worked with a number of first time buyers who have found this scheme ideal for getting onto the property ladder. We also helped them secure the right mortgage alongside the equity loan so that they were in the best financial position possible.
Have you been thinking about the Help to Buy Equity Loan? Can we help clear anything up for you?