Are you a first-time buyer? Do you need help getting onto the property ladder? There is a help to buy schemes that will help people purchase a home with only a 5% deposit. You can get up to a 20% of the property value (40% in London). The purchaser then gets a mortgage to make up the rest of the purchase price. The loan is interest-free for the first 5 years and after this period you will start paying the interest on the amount you have borrowed, you don’t pay anything towards the loan amount unless you have at least 10% of the value of your property or the whole 20% to pay the loan in full.
You must purchase from a registered homebuilder and the South West price cap is £349,000. So what is our advice on the help to buy scheme? We recommend that you look at sorting all of your finances so that a lender can see that your main focus is on paying the mortgage. This means you should be paying off any debt you have before you apply for a mortgage or at least make the debt as little as possible before applying. You will also want to save as much as you can each month towards the deposit as you need to have at least 5% of the purchase value of the property which is equal to £10,000 on a £200,000 house.
Reducing your outgoings will also help massively towards saving for the deposit and then paying the repayments once you have the mortgage. This will also help you in your application for a mortgage as the lender will see that you don’t have a lot of other money commitments. If you are in possession of a clean credit score this will help your case with getting a better mortgage than if you didn’t have a good credit score. When you are in the process of purchasing a property you might want to put some money aside for costs like solicitor fees and survey costs. There could also be costs like stamp duty on your property but sometimes you can get that included in the mortgage as the purchase price.
Barrett Mortgages is a professional finance broker and we don’t just help our clients with first time buys, we can help with moving your mortgage to a new home, self-employed mortgages, buy to let mortgages and so many more! We were founded by Darren Barrett back in 2009, this was during some of the hardest market conditions the industry has seen. Barrett Mortgages offer clear, trustworthy, honest and upfront services at times where 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 have built ourselves a strong reputation which is very important as we rely on referrals from our clients.
Get in contact with us if you are interested in our advice and service for help to buy homes Dorset.