Government mortgage schemes
In light of the credit crunch and the huge impact it’s had on the mobility of the housing market, the government has devised several tools that aim to support borrowers and lenders in the house buying process, offering support for lenders to take on mortgages with low deposits, and support for borrowers to get on the ladder with affordable rates, perhaps in areas where they wouldn’t normally be able to buy.
Click through the schemes to find out more information. Most schemes are open and available to anyone, however there are some that cater specifically for key-workers (teachers, police, nurses etc) to encourage them to buy in high value areas that would otherwise price people of those occupations out of the area. Help to Buy 1 was the original scheme for potential home-owners to get government help to buy a house, and involve the government actually lending money to the borrower. Help to buy 2 and NewBuy are government mortgage guarantee schemes, where the government doesn’t actually lend you money but instead supports the lender with an indemnity style agreement, so if the mortgage defaults and the house repossessed doesn’t recoup all the money, the policy covers the cost up to 15% of the property value. The keyworker scheme is another one of the government initiatives developed to help service workers that are home movers of any kind, not just first time buyers. For immediate advice on which mortgage scheme would be best for you, please make an enquiry or give us a call on 0808 189 2301 and we will pass you on to the most appropriate specialist.