Second stage of the Help to Buy mortgage initiative is rolled out 3 months early.
The second stage of the Government's Help to Buy mortgage scheme will start at the beginning of October, which is three months ahead of the January 2014 start date,
At scheme launch buyers were able to apply for a 20% equity loan on new build property, the second part of the scheme now means Help to Buy mortgages will be available for the purchase of all types of property.
David Cameron has commented on the decision, advising that as prime minister he cannot standby and watch while people are unable to climb on the housing ladder. He added that without the scheme, only younger first timer buyers with richer parents to help them out will be able to afford to buy.
The second part of the scheme now allows borrowers to take on a Help to Buy mortgage for property up to a value of £600,000 with just 5% deposit. The Government then provides the lender with a mortgage guarantee for up to 15% of the property’s value, in return for which they receive a fee.
If you are looking for a home but just have 5% as a deposit, than a Help to Buy mortgage could mean a lower rate. For advice and a quote you are advised to contact Deal Direct on 0800 048 8828.
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