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Comparing Help to Buy Mortgages

Find out how to get the best deal on help to buy mortgages.

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By Pete Mugleston   Mortgage Advisor

Last updated: 6th February 2019 *

Compare help to buy mortgages

We’ve been approached by lots of people who want to compare the range of Help to Buy mortgages on the market.

Unfortunately, Help to Buy rate tables don’t take your personal circumstances into consideration and so they don’t provide an accurate reflection of how much you can borrow or which lenders might accept your mortgage application.

The good news is that the brokers we work with can offer this information and find you the best mortgage deal.

To help you compare the best Help to Buy mortgage, we have gathered all the key information you’ll need to know in this guide including:

  • What is a Help to Buy?
  • Find a Help to Buy mortgage
  • Compare how much can you borrow on a HTB mortgage
  • Can you get a HTB mortgage with bad credit?
  • Compare how much you can borrow on a Help to Buy mortgage
  • Help to Buy mortgages on non standard properties
  • Why you should speak to an advisor about Help to Buy mortgage comparison
  • Contact a Help to Buy advisor

For a Help to Buy mortgage quote that takes your personal situation into consideration, speak to an advisor here.

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What is a Help to Buy?

Help to Buy (HTB) is a government scheme in the UK that aims to help first time buyers or homeowners looking to move home. It was introduced in 2013 and was originally intended to run until 2021. However, the deadline has now been extended by a further two years to March 2023.

The scheme is restricted to new build properties and borrowers are required to raise 5% of the property value as a deposit. The government with then lend up to 20% (or 40% in London) and the remaining 75% is covered by a standard repayment mortgage.

Find a help to buy mortgage

You may have found it difficult to get a mortgage through the Help to Buy scheme as previously lenders have been reluctant to provide mortgages to borrowers through the scheme, especially if they have more complex financial issues such as bad credit or low income.

However, more lenders are increasingly offering Help to Buy mortgages for applicants with problems this these, which is great news. However, unless you have an in depth knowledge about the current market and lender rates, it can be difficult to find a the best mortgage deal.

The whole of market mortgage brokers we work with will know which lenders to approach for you and can oversee the mortgage process to ensure you get the best Help to Buy mortgage rates.

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

Can you get a Help to Buy mortgage with bad credit?

The likelihood that you’ll be accepted for a Help to buy mortgage depends on a number of factors including how much risk you pose to a lender.

Because of this, bad credit can affect your chances of approval for a HTB mortgage as well as the interest rate you may pay on your loan. Some lenders won’t accept borrowers with “bad credit”, however there are specialist lenders who are more willing to lend to approve a mortgage for borrowers with a less than perfect credit history.

If you have bad credit this could include:

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

The point at which you'll become eligible for a HTB mortgage with any given lender really differs as lender policies can vary so much. Most may be happy to offer you a Help to Buy mortgage if you have a low credit score, some if you have CCJ and a handful will even consider borrowers who have been bankrupt, in the right circumstances.

Because of this, it’s best to speak to one of the mortgage advisors we work with who has experience in Help to Buy mortgages for people with bad credit.

For advice about how the specific type of bad credit you have can affect your application, contact a bad credit mortgage specialist here. Alternatively, see our bad credit information section.

Compare how much can you borrow on a Help to Buy mortgage

Every lender has a different level of generosity when it comes to how much they will consider lending you and the criteria they use to assess your affordability will vary from lender to lender.

For example, one lender may loan you a smaller amount if you are self employed as they view your income as unsteady, whereas another lender may have no issue with self employed applicants and quote you for a larger mortgage.

Usually though, most lenders provide loans at 3-4x your income, although some lenders may consider loaning 5x your income, and in the right circumstances, few may offer 6x your income.

See below for an example of how income multiples can affect the amount you borrow as well as your monthly repayments.

Gross income: £25,000

Interest rate: 3% (for example purposes only)

Income Multiples Loan Amount Monthly payments (mortgage term of 25 years)
x 3 £75,000 £356
x4 £100,000 £474
x5 £125,000 £593

It can be really helpful to see an overview of a Help to Buy equity loan mortgage comparison so you can see how much you can borrow and the different Help to Buy mortgage rates each lender will charge you.

If you would like a range of quotes based on your circumstances, speak to an advisor here.

Help to Buy mortgages on non standard properties

Help to Buy is only available on new build properties, so non-standard constructions may not be an issue for you as a buyer. That being said, lenders will want to consider the potential re-sale of a new build property and the likelihood that someone will want to buy it if they have to repossess. For this reason it can be more difficult to secure mortgages for new builds.

Because of this, the construction type of your property can affect how much you’ll be able to borrow and the interest rates of your mortgage.

However, there are lenders that are happy to consider Help to Buy mortgages on new builds, high rise flats and other construction types. For more information on this see our non-standard property section here

Why you should speak to an advisor about Help to Buy mortgage comparison

A mortgage broker who has specialist knowledge about HTB mortgage comparison can properly assess your application and search Help to Buy mortgages for you.  

Many customers come to us after being incorrectly quoted for a mortgage which is why we strictly only work with qualified advisors who are:

⦁ Whole of market brokers

⦁ OMA Accredited

⦁ LIBF Training course qualified

Talk to a Help to Buy advisor today

If you have questions about how to compare Help to Buy mortgages and want to speak to an expert for the right advice, 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: 6th 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