This means that you can buy a home in any area which is convenient for you, and not just one on a new development.
The scheme is aimed at:
- people who already own a home and want to move
- first-time buyers
If you have a deposit of between 5% and 20% of the value of the property you want to buy, you can apply for a mortgage from one of the participating mortgage lenders. (see our adviser for details)
The lender obtains a government guarantee for the amount by which the loan exceeds 80% of the property value.
If a borrower defaults on the mortgage repayments the government will reimburse the lender for any loss up to the amount of the guarantee.
The following conditions will also apply:
- it must be a residential mortgage, so you will be planning to live in your house and not rent it out
- the property you want to buy must be in the UK and the purchase value must be £600,000 or less
- the mortgage must be taken out on a repayment basis, rather than interest-only; that means that each monthly payment will include a small repayment of the amount you originally borrowed
- the mortgage must be to buy your only property, so you cannot own or have an interest in any other property, anywhere in the world
- the mortgage cannot be for shared ownership purchase, equity loan, or Right to Buy purchase where a Housing Association or local authority will retain an interest in the property
Should you require any help or further information on this scheme then please feel free to contact our in-house mortgage adviser – Andy Harrod on 01522 556086. He can guide you through the whole process and find the most suitable mortgage for your circumstances.