Help to Buy - Mortgage Guarantee
Part of the Help to Buy mortgage scheme, that assists with a government guarantee
Help to Buy – Mortgage Guarantee
Part of the Help to Buy mortgage scheme, that assists with a Government guarantee to the lender (not you, the borrower). This works by offering lenders the option to purchase a guarantee on mortgages where a borrower has a deposit of between 5% and 20%.
This helps banks & building societies to increase the products available.
Eligibility
The home must be:
- Your main residential property, not rented out following help or a second home etc.
- £600,000 or less
The home must not be:
- Part of a scheme e.g. shared ownership, but the property can be a new build or existing!
You must be:
- Able to pass a banks affordability assessments for the borrowing
- Debt / CCJ free with a clean credit record
- Living in the property or planning to - this is not a buy to let scheme
- Willing to take the new mortgage on a capital and interest basis only
What happens next?
You can apply to banks or building societies taking part in the scheme. The lender will check you are able to make the repayments before they offer you a mortgage.