Help to Buy Mortgage Schemes | Doncastermoneyman

Help to Buy Mortgage Schemes for First Time Buyers in Doncaster

Help to Buy Mortgage Advice in Doncaster

After the events of the unfortunate credit crunch back in 2008, the government introduced backup as a means of boosting the damaged mortgage market.

They introduced a variety of methods to help First Time Buyers in Doncaster find their spot on the property ladder. The methods brought in were called Help to Buy Schemes.

There are a few different Help to Buy Schemes that are available, each with varying eligibility criteria to meet. Here is a list of the most common schemes you’ll come across for a Help to Buy in Doncaster.

Help to Buy Equity Loan

The Help to Buy Equity Loan Scheme is the most popular one that we find customers look to use. If you are a First Time Buyer in Doncaster and looking to find a way to get started with your mortgage process, this could be the one for you.

Help to Buy Equity Loan Mortgage Advice UK | MoneymanTV

First of all, you must be a First Time Buyer in order to take out a Help to Buy in Doncaster. Additionally, it is only accessible on New-Build properties and you must have a minimum 5% deposit.

The Help to Buy Equity Loan Scheme works in a way that allows you to put down at least 5% of your own deposit, which will be topped up by a maximum of 20% by the government, bringing you up to 25% deposit overall.

This applies in multiples of 5, so if you put down a 10% deposit, you’ll get 15%, if you put down 15%, you’ll get 10% and so on. The intention here is to bring it up to 25%, opening you up to much better deals.

With a 75% mortgage and a government equity loan to pay back, you’ll be in a much better place to get onto the property ladder. You have 5 years to pay off your equity loan interest-free. After this point, you start paying interest, starting at a rate of 1.75%.

As a Mortgage Broker in Doncaster, we know that sometimes it may be difficult to pay both your equity loan and mortgage payments at the same time.

A possible solution to this, may be remortgaging to raise capital. It is important to note that this option will likely increase your mortgage payments.

Help to Buy Shared Ownership Scheme

The Help to Buy Shared Ownership Scheme allows people to purchase only a share of a property, paying the remaining amount owed as a monthly rental fee to your local authority, who will own the remaining share.

Help to Buy Shared Ownership Mortgage Advice UK | MoneymanTV

You’ll generally be earning a percentage that is somewhere between 25-75%, though this is not always the case. If you come into more money, you may have the option to potentially increase your shares.

Regarding your rental income, you will essentially be paying 100% of the ground rent and service charge on the property.

Help to Buy Armed Forces Scheme

The Armed Forces Help to Buy Scheme was brought in by the government back in 2014, following on from the success of the Help to Buy Equity Loan Scheme.

It is similar in concept to the original Help to Buy Scheme, helping first time home buyers who have served in the military, to find their own place on the property ladder.

Help to Buy Armed Forces Mortgage Advice | MoneymanTV

If you happen to meet the criteria for this particular mortgage scheme, it could be a great way to help home buyers get onto the property ladder when they otherwise may not be able to.

The government has set in place a review date of December 2022, for when the scheme is likely set to end. We are hoping this stays around, as not only a way to thank the armed services with a financial boost, but to also help them to own their own home.

Bonus: Lifetime ISA

Whilst technically not a Help to Buy Scheme variation, the Lifetime ISA is often a scheme that people forget about. The reality is, is that it can be a very helpful tool for helping you to purchase your first home as a First Time Buyer in Doncaster.

Lifetime ISA Mortgage Advice UK | MoneymanTV

The function of this, is that it is basically a savings account for finances to grow, free of tax. You’ll get a yearly government top-up of 25%, with a capped amount of £4,000. This means if you go with the maximum amount, you’ll get a nice £1,000 bonus!

In order to access this, you will need to meet very specific lending criteria. Full information can be found on the Lifetime ISA website.


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Authorised and Regulated by the Financial Conduct Authority.
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The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
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© 2022 Doncastermoneyman

Doncastermoneyman, 3 Cavendish Court, South Parade, Doncaster, DN1 2DJ.

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