Your first Mortgage!

London

As scary as it may seem, getting your first mortgage in 2018 isn’t all that bad.

With the help of a mortgage broker, and/or the government help to buy scheme you will find yourself moving into your very first home in no time!

 

What is the government help to buy scheme?

The government help to buy scheme is a scheme announced in 2013, and was brought into action to help the younger generations of today get onto the property ladder and obtain their first mortgage.

With the 2007 recession, the ability to obtain a mortgage has vastly decreased with tighter regulation brought in to stop the same from happening again.

 

The government help to buy scheme has 3 main products:
  • Help to buy ISA
  • Help to buy shared ownership
  • Help to buy dealers deposit/Equity loan

 

Help to buy ISA

With a mortgage, the main thing to think of is a deposit, they go hand In hand.

The bigger the deposit, generally the better your chances are of getting one. This is where the Help to Buy ISA comes in.

With the H2B ISA, savers save up to £200 a month in an ISA and earn a government bonus of £50 for every £200 saved (there must be a minimum of £1600 in the ISA before you can claim a bonus and the maximum bonus you can get is £3,000).

 

Help to Buy shared ownership

If you really want your first home but can’t afford the full mortgage for one, the H2B Shared ownership scheme comes to play.

The Shared ownership scheme allows you to buy a share of your home (between 25%-75%) and then pay rent of the remaining share.

You can start buying back the other shares when you can afford too. This makes it easier to get a mortgage as you are only getting a mortgage for the share you are buying, not a mortgage of the full value.

 

Help to buy equity Loan

Finally, there is the Equity loan. As stated earlier, your chances of getting a mortgage are better if you have a deposit, and generally, the bigger the deposit the better.

With the Equity loan, you only need to save up a 5% deposit for your new home, with the government lending you another 20%. This way you only need a 75% mortgage, increasing your chances of being accepted for a mortgage if you’re a first-time buyer (you would need to start paying the money back on the equity loan after a fixed period).

 

So, there you have it, getting you first home isn’t all as scary as it seems! There are plenty of options out there to help you get your first mortgage and your perfect first home!

Visit us at http://activemortgageservices.co.uk/first-time-buyer/ for more information!

 

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