Many people are confused or uncertain about the basics concepts around the government’s Help to Buy (HTB) scheme. In our experience, HTB presents a fantastic opportunity for home buyers to take their first step or move up a rung on the housing ladder.
As mortgage brokers we are asked a lot of questions about HTB and our attitude is – there are no silly questions about mortgages. Buying a property is a major commitment, you should always feel confident that you know as much as you can and that you don’t have unanswered questions around finances.
Here are just a few of the common myths and questions that we often hear or asked by clients. And of course our responses, we want to help clear up any confusion you may have about HIB.
- Is HTB just for first time buyers?
Help to Buy is NOT just for first time buyers. However, there are some other restriction you must be aware of: it is exclusive to new-build properties and on completion of your purchase it must be the only property you own.
- I think I earn too much to qualify for HTB.
There is no limit on income. There is a simple affordability calculator which assesses income, property purchases can be no more than 4.5 x income up to a maximum purchase price of £600,000.
- Is Help to Buy to stop at the end of the decade?
No, it has been extended until 2023. However property purchases after 2021 will only be first time buyers and for homes with a set price cap based on the region you buy in.
- Am I only able to put a 5% deposit down on HTB?
5% in the minimum deposit. You are able to put down a bigger deposit to qualify for potentially cheaper mortgage rates.
- I am not a British citizen so assume I cannot use the HTB scheme.
It doesn’t matter if you are a UK national or foreign national, as long as you have a UK Visa you can consider using the HTB scheme.
We hope this article was useful and you feel more informed about HTB. We aim to support home buyers as best as we can, we will be publishing a Jargon Buster aimed at First Time Buyers soon. In the meantime if you would like to know more about the Help to Buy scheme and how it could benefit you in your next house purchase please contact Limetree Financial Services.