Help To Buy Homes In Poole
Do you need some help buying your first home? Don’t worry about a lot of young people are also needing this help from the government. The help to buy scheme can be a great opportunity for anyone to get onto the property ladder, as long as it is your first property you will be owning. How it works in you need to gather a 5% deposit of the property purchase price and then the government will lend you up to 20% of the property purchase price and then from that, you will only need a 75% mortgage to cover the rest of the property purchase price. Depending on where you live there are price caps that you have to be within to qualify for the loan.
In the South West where we are located the price cap is £349,000, this means that if you purchase a property that is £375,000 you will not qualify for the equity loan. You don’t have to pay interest on the equity loan for the first 5 years. In the sixth year, you’ll be charged at a rate of 1,75%. This will be applied to the equity loan amount you originally borrowed. The interest rate increases every year. Your interest payments will decrease if you make a part repayment of the equity loan. When you pay back the loan, you can do it in part or all at any time. The repayments are based on your equity loan percentage and the market value of your home at the time you want to make a repayment. The smallest repayment you can make is 10% of the market value of your property.
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So when you are thinking about buying your first home even if you are thinking years in advance it’s always good to know the goals you have to meet so you can be prepared and start saving at the right time. When it comes to the time where you want to start saving and getting yourself ready to get onto the property ladder you will want to make sure you are able to save a decent amount of money each month to accumulate a deposit big enough for the property you want to buy, then you should work on getting outgoings as low as possible so that when a lender takes a look at your finances they see that you don’t waste all of your money each month on things that aren’t essential.
If you have any debt as well it would be a good idea to try and get that debt as low as you can before trying to get a mortgage as a lender will want to see that you are focused on paying the mortgage and not another debt. When you put down a deposit onto a property bigger is better and owning more of the property yourself will decrease the size of the mortgage you need and therefore decrease the amount you pay back each month as well.
If you are interested in the advice and guidance we can provide you with please make sure you get in contact with our team and we can help you get the best property possible. Want to see what our customers think about our service? Take a look at our Google Reviews.