The Government has introduced a new 'Help to Buy' scheme for UK Contractors who are looking to buy their first home. This scheme makes it very easy for contractors to get on the property ladder. This is also seen as one of the largest initiative in the UK housing market.
This scheme is specifically for those who are finding it difficult to save for a larger deposit. This scheme was launched in two phases, phase 1 was launched in April 2013 while the second phase was launched in October 2013.
There are 2 "Help to Buy" options available for UK contractors purchasing a property up to the value of £600,000. One option being the Equity Loan and the other one being the Mortgage Guarantee.
Equity loan option is only available on new build properties, in which, the Government chips in with an equity loan of up to 20% of the purchase price towards your deposit, alongside a traditional mortgage. Borrower then adds 5% deposit, making a total of 25% as a mortgage deposit.
This is a great opportunity for First Time Buyers looking to get onto the property ladder. To take advantage of this scheme, contractors will need to approach HomeBuy agents. Most agents will ask for an evidence of mortgage agreement in principle before granting the equity loan.
We can help you get a mortgage offer / agreement in principle within a matter of few hours. Please get in touch with us.
This scheme is available on new build as well as pre-owned properties. Through this scheme, the Government ensures that a standard mortgage of up to 95% of the purchase price. It also applies on remortgages.
The main benefit of this scheme is that most mortgage lenders will be ready to offer this option to contractors. Halifax Contractor Mortgages scheme has this option for contractors looking to move ahead with as low as 5% deposit, as they are one of the participating lenders.
Halifax's help to buy contractor mortgages guarantee is a great opportunity for contractors as they can borrow based on a multiple of their annualised contract rate alone. Under this scheme, contractors get a maximum Loan to Value (LTV) of 95% with an interest rate of 4.79% for properties up to £600,000 and two years old. This option is open for both, first time buyers as well as next time buyers.
In order to take benefit of this scheme, please get in touch with us. For more information, you can visit HM Government's Help to Buy site
Alternatively, try our contractor mortgage calculator to find out how much you can borrow