Mortgages: Help to Buy



Help to Buy is a Government Scheme to support people who have a small deposit (at least 5%) and wish to buy a home up to £600,000.

There are 2 types of Help to Buy schemes:

Scheme 1 – Equity Loan

Scheme 1 is suitable for first time buyers and current homeowners alike; however the scheme only covers new build properties, built by an approved builder on the Help to Buy panel. The minimum deposit is 5% and the maximum purchase price is £600,000. This scheme cannot be used for buy-to-let or investment properties. The Government then provides up to 20% of the property value on top of your 5% deposit as an equity loan, thereby giving you 75% loan-to-value.

Scheme 2 – Mortgage Guarantee

Scheme 2 is also suitable for first time buyers & homeowners, but it covers both new build properties and existing homes. The minimum deposit is still 5%, but you can put down up to 20% of a deposit if you wish. There is no government deposit, so you can take on up to 95% lending with your mortgage lender. Again, the maximum purchase price is £600,000.

These are just a few introductory points – there are many more details to be considered before proceeding with this type of mortgage. Cox & Co offer free impartial, no obligation advice. Contact us using the contact form opposite, or by phone at ourAberdeen or Edinburgh office, and find out what we can do for you today.

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