Help to Buy Mortgage Guarantee helps you buy an open market property up to £600,000 anywhere in the UK, including Scotland, with as little as 5% deposit.
The scheme is not restricted to first time buyers, and is available for both new build and existing properties, so a wider range of potential home owners can benefit.
The scheme allows buyers to take out mortgages of between 90% and 95%, because the UK government offers the lenders extra security (the mortgage guarantee) in case you default on your mortgage and the house has to be sold for less than you paid for it. The lender will still ensure that you can afford the mortgage with your current income. Any other borrowing you may have such as credit cards or a car loan, will be taken into account when working out how much you can afford.
Any mortgage you take out must be on a repayment basis. Interest only mortgages and guarantor mortgages are not eligible for this scheme.
This mortgage guarantee only protects the lender, not you, so you still have to keep up payments or risk losing your home.
The property must be your only home, so the Help to Buy Mortgage Guarantee scheme is not suitable to fund an additional home or buy to let. Also, the property must not be a shared equity or shared ownership home.
For expert advice on the right mortgage for you, call our mortgage advisers on 0141 227 7788 or fill out the form below.
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