New Build Help to Buy Mortgages

If you are a First Time Buyer buying a property can seem overwhelming. You will have lots of questions to ask, so below we have detailed common questions we get from clients to help you.

How does the scheme work?

If you have a deposit of 5%, the help to buy equity loan could provide an additional deposit of up to 20% (if the property outside London) or 40% (if the property is located in London), and then you can get a mortgage for the remaining balance.

When do I apply for the Help to Buy scheme?

First of all you need to find a property and make sure you qualify for a mortgage. It is important that your mortgage adviser has got an ‘Agreement In Principle’ in place, so you can be confident that a mortgage is possible.

You need to complete the help to buy application form.

Make sure you complete all the information correctly and answer all the questions. It can take around 2 weeks for your application to be assessed and if any information is wrong you will have to submit a new application. Once accepted the help to buy scheme will issue you an Authority to Proceed (ATP).

With the Authority to Proceed in place you can now apply for the mortgage.

Once I have bought the property who do I speak to regarding the equity loan?

If you have any questions you will need to speak to the Equity Loan Administrator.

Can I rent out the property?

The equity loan and the mortgage you have in place will be solely for the use as your main home, so therefore you cannot rent out the property. There may be some exceptional circumstances where consent to let maybe granted – for this you should contact the help to buy administrator and your mortgage lender.

Can I remove an ex-partner from the equity loan?

It may be possible to remove an ex-partner from the equity loan by arranging a ‘deed of release’. This will allow the ex to be removed from the loan and any obligations to make the repayments. You will have also to liaise with your mortgage lender to ensure they also consent to this.

If there are Repairs needed on the property who pays for this?

New homes generally come with a guarantee that will cover certain defects for a period of 10 years after it was built. Your solicitor should confirm this guarantee and what it covers.

Where can I get Help to Buy advice?

You could visit the government website which has lots of useful information about the scheme, plus on this website you can explore other ‘help to buy’ schemes such as Shared Ownership or the Help to Buy Isa.

The advisers at The Money Hub would be able to give you advice on the availability of help To buy bad credit mortgages. If you have bad credit registered in the past such as missed payments, defaults or county court judgements there are specialist lenders available who could potentially help you.