Help to Buy: Mortgage Guarantee
Help to Buy: Mortgage Guarantee is a government scheme designed to help prospective homebuyers across England, Scotland and Wales purchase a home with just a 5% deposit.
Available through selected lenders, buyers may be eligible for a 95% mortgage, of which 15% is covered by government guarantee. This guarantee protects the lender against losses, which means that participating banks and building societies can offer higher loan-to-value mortgages than might otherwise be available.
Help to Buy: Mortgage Guarantee is available on existing and new-build properties costing up to £600,000.
Help to Buy: Mortgage Guarantee Terms and conditions
The property you are purchasing could be an existing or new-build home in the UK, priced up to £600,000
You must not own any other property anywhere in the world at the time you buy your home supported by the Help to Buy: mortgage guarantee scheme
Your mortgage must be a repayment one, not interest only. Offset and guarantor mortgages are also excluded from the scheme
You can’t let out the property to somebody else
Your mortgage can be taken out by an individual or individuals but not by a company
You cannot use the mortgage guarantee scheme with any other Government scheme such as Help to Buy: equity loan or shared ownership. Your deposit for the property can’t come from a government scheme either
You don’t have to pay any additional fee to Government to get a Help to Buy supported mortgage
The size of the mortgage you apply for must be less than 4.5 times your income.
The Help to Buy: mortgage guarantee scheme will run for three years until 31 December 2016.
Prices and details are correct at time of going to press.
Images are typical of Bellway properties.