Dispelling the “Help to Buy” Myths

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. 

  1. 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.

Michael Taylor-Brown

Director

01223 266140

mtaylor-brown@limetreefs.co.uk

Posted in First Time Buyers, Next Time Buyers

Top Tips for Millennial First Time Buyers

Buying your first house in today’s property climate is no easy task, but it is certainly a rewarding one. Millennials don’t have it all on a plate, and it takes a lot of determination, not to mention giving up those sacred avocado toasts ;). Whilst you might see buying your first home as a long way off, it’s never too early to begin preparing. You can look into different schemes which might help you to get your foot on the ladder earlier than expected, and it’s good to know exactly what buying a house entails. Know where you stand, and if the dream of buying a house is actually closer than you may think!

Read more

Posted in First Time Buyers

Recent Changes To Stamp Duty Could Make Life Easier For 1st Time Buyers!

This week has seen changes to the UK budget that could make pathways to home ownership for 1st time buyers better than we’ve seen for a long time. As always we were given a few tit-bits of information prior to the budget being officially released by Chancellor Phillip Hammond and these leaks made us hopeful that this time around the Government was going to aim to tackle the ongoing housing issues that have blighted this country for years.

The younger generation have in recent decades become dismayed that the prospect of being able to get onto the property ladder has become an unachievable dream for them. This year, massive changes to the key policy on Stamp Duty for First Time Buyers, could mean that home ownership becomes a very real possibility for many.

Read more

Posted in First Time Buyers

Getting a Mortgage too Daunting for You? Read on!

Getting a mortgage is one of the biggest and scariest commitments you’ll ever make in your life. Once you’ve taken the plunge, it’s true you could be liable for an awful lot of money, but the benefits of having a mortgage can far outweigh the risks.

It can be tempting to stick to renting, there are definitely advantages involved. Relying on a landlord when things go wrong is a safety net for many, but it’s not always as easy as that. When you own your home, you’re the master of the ship. Nobody dictates what you can and can’t do with the place you call home. You don’t have to follow the rules set out in your tenancy. You can do things on your own terms.

You are entering into a big agreement with your mortgage provider, but looking around for the best rates often means you finish up paying for less for your monthly mortgage repayment than you would for your monthly rent. Financial freedom often comes from having a lower repayment and not being so restricted by your finances before payday.

Read more

Posted in First Time Buyers, Mortgages