Help to Buy Mortgages

If you have a 5% deposit you may qualify for the government help to buy mortgage scheme.

This is very popular amongst First Time buyers although Homemovers can also benefit from the scheme.

If you need a bad credit mortgage as you have had missed payments, defaults or CCJ’s registered against you, we have specialist lenders that can help you buy your next home.

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Help to Buy Mortgages with Bad Credit

The Help to Buy scheme is a Government initiative set up to stimulate the housing market and help first time buyers and existing home owners purchase new build properties to live in.

This scheme is designed for people with only a 5% deposit being available. The aim by the Government is to help people get onto the housing ladder. With this scheme the Government lends you up to 20 per cent of the price of the property (40% in London) and payments on this government loan will only begin after 5 years where you will pay the interest only. Only New build properties under the value of £600,000 qualify for this scheme, with a requirement of a 5% deposit.

The 20% Government loan (40% in London) obviously reduces the initial mortgage repayments significantly. At the end of the mortgage term, or if the house is sold then the government loan needs to be repaid.

Help to buy mortgages are available from most high street lenders plus if you have any bad credit in the form of missed payments, defaults or county court judgements we have lenders who can provide bad credit help to buy mortgages.

The government has a lot of information about the help to buy scheme on its website which you can visit - www.helptobuy.gov.uk.

London Help to Buy Scheme – If you are based in London due to the higher property prices the government will consider giving you an equity loan of 40% rather than the 20% offered to the rest of the country. More information on this can be seen on here.

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What to Expect from The Money Hub

We Gather Information Required to Search the Market

We gather some basic information about you using our quick online form

Conduct a Whole of the Market Comparision

We will search 100’s of providers to find you the lenders who are willing to approve your mortgage

Provide full service through to completion

We will show you rates along with the monthly repayments. This will not affect your credit score. We’ll also explain any fees if you progress at this point and as long as you are happy to proceed, provide you with the full service through to completion of your mortgage being accepted

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Help to Buy Mortgage FAQ's

Who does help to buy mortgages?
Most of your high street banks and building societies offer help to buy mortgages. To qualify for a high street lender you will need to have a good credit score, however some building societies will rely upon your credit profile rather than your credit score although you still will need to have a good payment record. If you have had some bad credit in the past there are specialist lenders available who offer their products through mortgage brokers who will consider providing you with a help to buy mortgage.
Can you get a help to buy mortgage with bad credit?
There are lenders that will lend to clients that have bad credit registered. The availability of these mortgages will depend upon when the bad credit was registered, what type of bad credit was it, i.e. loan, credit card or mobile contract for example, how much was the bad debt and has it since been satisfied. You should review your credit report before applying for a mortgage and where possible try to resolve any credit issues.
How do help to buy mortgages work?
You will always need to put down a deposit of 5% yourself and this could come from savings or maybe gifted from close family. The government will then lend to you up to 20% (or 40% in London) and then the remaining 75% (or 55% in London) you can take out a mortgage for. You will need to pass the mortgage lenders affordability assessment and also make sure you pass the Help to Buy eligibility and affordability criteria. A mortgage broker will walk you through the steps to obtain a mortgage starting with getting an Agreement In Principle arranged.