Getting on the property ladder isn’t easy and many people in Britain have struggled to do so, with help to buy properties in Bournemouth you will have no problem. An indication of how hard it is is with the rollout of the help to buy scheme. Which offers attractive cash incentives to people saving for a deposit. New help to buy scheme has been announced to run from April 2021.
It is restricted to first-time buyers and will include regional property price caps to ensure the scheme reaches the people who need it most. If you’re a first-time buyer you can apply for help to buy equity loan. What this means is that the government will give you a loan to put towards the cost of buying a newly built home. You can borrow a minimum of 5% and up to a maximum of 20% of the full purchase price of a new-build home.
You must buy your home from a home builder registered for help to buy the amount you pay for a home depends on where in England you buy it. You won’t pay any interest on the equity loan for the first 5 years. In the 6th year, you will start to pay interest on the amount you borrowed. These loan payments are interest only, so you don’t reduce the amount you owe. You can then repay all or part of the loan at any time. A part payment must be at least 10% of what your home is worth at the time of repayment. This scheme will run until March 2023.
Barrett Mortgages is a professional finance broker with offices located in Poole, Dorset. Providing mortgages for everyone including first-time buyers. A lot of people are fed up with the high-pressure sales tactics of the large corporates, Barrett mortgages was set up by Darren Barrett in 2009, during some of the hardest market conditions the industry has seen. The unparalleled, clear, trustworthy, honest and upfront service offered by Barrett mortgages has meant our business has thrived during these times when clients have needed more individual and specialist help. All of our staff are fully qualified, experienced and chosen based on their keenness to provide the best possible experience for our customers. We promise no pushy hard sale tactics and have built a strong reputation which is important as we rely heavily on referrals from clients.
When you are saving for your first home it is important to get as big of a deposit as possible this is because having a bigger deposit will give the lender less reason to make changes as the deposit is their protection. When deciding if the lender should accept your mortgage application they will think about the challenges you might face. This could be unemployment, a fall in house prices and periods of reduced income or disposable income. Therefore bigger is better. The bigger deposit will also mean you will have less to repay each month as the mortgage won’t be as big.
It is very easy to get caught up with all of the savings you could be making with a bigger deposit and the help to buy scheme, but it is important to set money aside for other costs. This could be for stamp duty, solicitor fees and surveyor’s fees. Then you will still have the actual cost of moving from A to B.
If you are interested in our advice and service please get in contact with us. We can advise you on mortgages based on your personal financial circumstances.