Help To Buy Buying a property can be the biggest decision made in our lives. It is for this very reason that professional advice is critical from qualified advisers. CONTACT US

So, you’ve been saving as hard as possible to get your foot onto the property ladder but you’re still unsure on how to take the first step.

Or you’re thinking of moving but need a slightly bigger deposit to make it work.

You’ve heard about the Government backed Help to Buy scheme but are still unclear on how it can help you in contributing towards your deposit.

Well Stewart Financial are here to help simplify things for you. Our brief guide will tell you everything you need to know about the Help to Buy Equity Loan and how you can take advantage of it today.

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With a Help to Buy Equity Loan the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit. Stewart Financial will help you to source a 75% mortgage to make up the rest.

A common myth is that the Help to Buy scheme is only available to First Time Buyers, however this is not the case. The Help to Buy Equity Loan Scheme caters to Home Movers as well as First Time Buyers and can be a much more affordable way of purchasing a property. The scheme allows you to place a 5% deposit on a property whilst the Government lend you up to 20% of the rest of the deposit.

Many clients ask what the difference is between this and just placing a 5% deposit and borrowing the remaining 95% from the bank. In essence because you are only borrowing 75% of the property’s value the Help to Buy Equity Loan Scheme can make monthly mortgage payments a lot more affordable, also resulting in less borrowing against your credit profile.

Please note the 20% equity loan is interest free for the first 5 years of the mortgage term and then will be subject to interest.

If you purchased a home valued £200,000

 You would take out a mortgage for 75%

 £150,000

 You would pay a 5% cash deposit

 £10,000

 The Government would provide an equity loan for the remaining 20%

 £40,000

 £200,000

If the home in the example above sold for £210,000, you’d get £168,000 (80%, from your mortgage and the cash deposit) and you’d pay back £42,000 on the loan (20%). You’d need to pay off your mortgage with your share of the money.

London Help to Buy
To reflect the current property prices in London, from February 2016 the Government has increased the upper limit for the equity loan it gives new home-buyers within Greater London from 20% to 40%.

To find out more about Help to Buy, please get in contact today

Just send us your questions and we will give you the help you need.
STEWART FINANCIAL ASHFORD

A: 21 Cedar Parade, Ashford TN23 3TE
T: 01233 807107
E: mortgages@stewartfinancial.co.uk

STEWART FINANCIAL FOLKESTONE

A: 93-95 Sandgate Rd, Folkestone CT20 2BQ
T: 01303 210343
E: mortgages@stewartfinancial.co.uk

STEWART FINANCIAL TENTERDEN

A: 102 High St, Tenterden TN30 6HT
T: 01580 392102
E: mortgages@stewartfinancial.co.uk

STEWART FINANCIAL HYTHE

A: 156B High St, Hythe CT21 5JU
T: 01303 720724
E: mortgages@stewartfinancial.co.uk