Since its launch in 2013, over 150,000 homes in the UK have been purchased with the assistance of one of the Help to Buy schemes available.
However, with four different types of scheme under the Help to Buy umbrella – Shared Ownership, Equity Loan, London Help to Buy and Forces Help to Buy - it can be confusing to work out which one is right for you, and what you may be eligible for.
So, to help you to decide which of the schemes might be right for you, we’re going to answer three of the most popular questions around Help to Buy…are you ready to get started?
1) Can you only use a Help to Buy scheme if you’re a First Time Buyer?
Not strictly true! Yes, you need to be a First Time Buyer – i.e. never have been named on the deeds of a property previously – before applying for a Help to Buy ISA, but the Equity Loan Scheme can be used by those who already own a property but need to move, for example if you need a bigger property due to a growing family. Likewise, the Help to Buy Shared Ownership Scheme is open to those who’ve previously owned a property, as well as First Time Buyers. Of course, with all Help to Buy Schemes there are other qualifying criteria that you need to meet, but just because you’re not a First Time Buyer shouldn’t put you off investigating the options available.
2) Is there an age limit on Help to Buy?
This isn’t the case either! You can use any of the Help to Buy schemes at any age and there is no upper age limit, although you need to be over the age of sixteen in order to apply for a Help to Buy ISA and over the age of eighteen to apply for any of the other schemes.
3) I need to get a special type of Help to Buy mortgage. Which is more expensive and complicated to apply for?
Whilst you will need to apply for a specific type of mortgage if you are purchasing via either the Equity Loan or Shared Ownership Help to Buy schemes, these are no more complex than any other type of normal mortgage. All you need to do is let your mortgage advisor or broker know at the very start of the process that you are interested in buying a property via one of the Help to Buy schemes and they will be able to source an appropriate mortgage for you. Many mainstream lenders, such as Barclays, Halifax and NatWest, offer Help to Buy Equity Loan and Shared Ownership scheme mortgages, and they are designed to be as straightforward as possible to apply for than any other type of mortgage.
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