How To Apply For Help To Buy

Applying for Help to Buy: A Comprehensive Guide

If you’re a first-time buyer, getting on the property ladder can seem daunting, especially in a city like London where property prices can be high. However, the UK government’s Help to Buy scheme can be a game-changer for those looking to buy their own home. Here’s a comprehensive guide on everything you need to know about applying for Help to Buy.

What is Help to Buy?

Help to Buy is a government scheme designed to help first-time buyers and existing homeowners purchase a property. There are two parts to the scheme, namely the Equity Loan and the Mortgage Guarantee. The Equity Loan scheme is available to anyone looking to buy a new-build home, while the Mortgage Guarantee scheme is applicable to both new-build and existing homes.

How Does Help to Buy Work?

The Equity Loan scheme allows you to borrow up to 20% of the purchase price of the property interest-free for the first five years. The remaining 80% of the property’s value can be financed through a mortgage. In London, the maximum equity loan you can get is up to 40% of the property price.

The Mortgage Guarantee scheme enables you to buy a home with a deposit of just 5% of the property’s value, making it easier for first-time buyers to get onto the property ladder.

Who is Eligible for Help to Buy?

To be eligible for Help to Buy, you must:

– Be a first-time buyer, or own a home but cannot afford to move.
– Have a deposit of at least 5% of the property’s value.
– Be purchasing a property that’s worth less than £600,000.
– Be able to pass a credit check and affordability assessment.
– Meet the lender’s eligibility criteria.

How to Apply for Help to Buy

To apply for Help to Buy, you need to follow these three simple steps:

1. Find a property

Before applying for Help to Buy, you need to find a property that’s available for sale under the scheme. You can check the Help to Buy website or consult with a reputable estate agent to find the available properties.

2. Arrange a mortgage

Once you’ve found a property, you need to arrange a mortgage. You can do this through a mortgage lender or a mortgage advisor who can guide you through the process.

3. Apply for Help to Buy

The final step is to apply for Help to Buy. You can do this through the Help to Buy agent in your area. You’ll need to fill out an application form and provide supporting documents, such as proof of ID, income, and residency.

Conclusion

Help to Buy can be a fantastic opportunity for first-time buyers or those looking to get back onto the property ladder. However, it’s essential to understand the scheme’s eligibility criteria, how it works, and the application process. By following this comprehensive guide, you’ll be able to navigate the Help to Buy scheme and potentially buy your dream home.