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Help to Buy - Mortgage Rates

What interest rates would you expect to pay on a Help to Buy Mortgage? Find out here.

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By Pete Mugleston   Mortgage Advisor

Last updated: 7th February 2019 *

Help to Buy mortgage rates

We get lots of enquiries from people who want to know the best Help to Buy mortgage rates, many of whom may have been declined a mortgage or have a bad credit history.

There are a range of online Help to Buy mortgage rates tables that each provide brief information about the different rates that each lender may give you.

However, these tables don’t give an accurate guide and can be misleading because they don’t take into account your financial and personal circumstances, which lenders will look at to determine what rate to give you.

The good news is that the brokers we work with can provide this information and find you the best Help to Buy mortgage deal based on your circumstances.

To help you understand more about Help to Buy rates,we have gathered all the key information you’ll need to know including:

  • Find the best Help to Buy mortgage rates
  • Help to buy mortgage rates across the UK
  • Help to Buy Equity loan mortgage rates
  • What interest rate do you pay on a Help to Buy Equity Loan?
  • Repaying a Help to Buy mortgage
  • Will Bad credit affect your mortgage rate?
  • Why you should speak to an advisor
  • Speak to an expert about Help to Buy rates

If you are looking for a for a Help to Buy mortgage quote that takes your individual situation into consideration, speak to an advisor here.

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Find the best Help to Buy mortgage rates

A lot of customers approach us after searching through online rate tables - the problem is, everyone’s personal circumstances are different and these tools don’t take that into consideration. This can make it difficult to know if you’ll qualify for a mortgage and the rate you are presented with.

Every lender has different rules about what they will and won’t accept from a customer in terms of bad credit or income, so for an accurate reflection of the rate you would expect to pay on your mortgage, you need to speak to a mortgage advisor who specialises in Help to Buy mortgage rates.

If you have more complex financial circumstances such as “bad credit” or a fluctuating income, then getting the best deal for you relies on a broker who knows the market and which lenders are more likely to accept your mortgage application.

Make an enquiry here and one of the experts will give the right advice.

Help to buy mortgage rates across the UK

Help to Buy varies across the UK and depending on where you live and the choice of lenders in your area, you may pay a different interest rate on your Help to Buy mortgage.

Cities and highly populated areas often present a wider range of lenders in comparison to smaller cities and towns, so you may find that there aren’t as many Help to Buy mortgage rates to choose from if you live in a more rural area.

Additionally, if you have any financial issues that pose a risk to lenders such as “bad credit” or low income, this can also restrict the number of lenders that may can consider you as well as resulting in you possibly paying a higher interest rate on your Help to Buy mortgage.

Despite where you live, the mortgage advisors we work with dedicate their time to finding the best mortgage rates for Help to Buy in the UK, including locations in Scotland, Wales and England.

Speak to an expert today to find the best Help to Buy mortgages in the UK.

Help to Buy Equity loan mortgage rates

The amount of Equity Loan you can borrow from the government differs based on your location too.

See below to see how your Help to Buy Equity Loan rate can vary across the UK:

Location

Deposit

Equity Loan

Mortgage

Best Help to Buy mortgages Scotland

5%

Up to 15% of the purchase price

     80%

Best help to buy mortgages Wales

5%

20%

75%

Best Help to Buy mortgages England

5%

20% (up to 40% in London)

75%

What interest rate do you pay on a Help to Buy Equity Loan?

A Help to Buy Equity Loan is charged at a 0% interest rate for the first five years but after this, you'll be charged 1.75% on your outstanding amount as interest.

This will increase each year by RPI (Retail Price Index) which can increase or decrease due to inflation, plus 1%.

Equity Loan interest rate example

If the property you were buying was valued at £200,000 and you had a 5% deposit of £10,000, your maximum Equity Loan would be 20% (£40,000.)

The examples below was calculated with an RPI of 5% for example purpose only.

 

Interest rate

RPI + 1%

Interest Only Loan repayment

0 - 5 years

0%

0%

6

1.75

£700

7

1.86

£744

8

1.97

£788

9

2.08

£832

10

2.21

£840

The above example shows the potential interest only payments for an Equity Loan. These would be paid alongside your mortgage payments and do not pay off the Equity Loan itself.

Repaying a Help to Buy mortgage

You can choose to repay your Equity Loan during the term of your mortgage, alongside your interest only payments and your mortgage, although for some borrowers, this can be expensive and difficult to keep up with.

An alternative would be to pay your Equity Loan as a lump sum when you sell your property, however if your property increases in value over time, the loan amount you have to pay back will also increase in line with this.

Calculating how much your Help to Buy mortgage repayments could be can be complex so speaking to a mortgage broker who has experience in Equity Loans can really help.

As well as looking at your finances and your situation to give you a tailored Equity Loan and mortgage quote for Help to Buy, a mortgage broker can also find you the best interest rates. Speak to an advisor for more information on this here.

Will bad credit affect your mortgage rate?

Some lenders won’t accept borrowers with bad credit however there are specialist lenders who have more of an appetite to lend to borrowers with bad credit. This can however, affect the Help to Buy interest rate that you are charged.

If you have bad credit this could include:

  • Low credit score
  • Late payments
  • Mortgage arrears
  • Defaults
  • CCJs
  • Debt management plans
  • IVA
  • Bankruptcy
  • Repossession

Some lenders view more severe forms of bad credit such as Bankruptcy as more of a risk, as this can suggest a history of mishandling debts and money. Therefore this is another factor that can affect the amount of interest you may pay on your HTB mortgage.

Because each lender has varying rules on how they assess “bad credit” mortgage borrowers, it’s best to speak to one of the mortgage mortgage advisors we work with who has experience in Help to Buy for people with “bad credit.”

The advisors we work with have access to a range of lenders and after talking with you and understanding your situation, will know the best Help to Buy mortgage products to recommend.

For more information on how “bad credit” can affect your Help to Buy mortgage rate, contact a bad credit mortgage specialist here. Alternatively, see our bad credit information section.

Why you should speak to an advisor

We have access to over 100 mortgage brokers and each one is carefully vetted to ensure that they have the specialist knowledge to provide the most accurate advice.

Here’s how the mortgage advisors we work with can help you:

  • Search the market and find the top 10 Help to Buy mortgages for you
  • Calculate your mortgage and Equity Loan repayments to give you an accurate reflection of what you can expect to pay
  • Calculate your affordability for a Help to Buy mortgage and put you in touch with the lenders with the best rates
  • Help you through the Help to Buy mortgage process

Make an enquiry here and one of the experts be in touch shortly to help.

Speak to an expert about Help to Buy rates

If you have questions about Help to Buy mortgage rates or would like a Help to Buy mortgage quote, call Online Mortgage Advisor today on 0800 304 7880 or make an enquiry here.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances.  – We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

Updated: 7th February 2019
OnlineMortgageAdvisor 2019 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

Find out more about Help To Buy

Help To Buy Mortgages