Help to Buy Mortgages

Help to Buy Mortgages

Buying a house can be a difficult and confusing prospect, and finding a suitable mortgage is one of the biggest steps. When looking for a Help to Buy mortgage, many people become overwhelmed by the options and struggle to decide – which is not surprising when it is one of the largest financial decisions people will make.

If you want to find the best Help to Buy mortgages for your needs, you can use our simple mortgage quote comparison tool. Comparing mortgage quotes can help give you the chance to save money. It can also help you find the right options for your mortgage.

What is a Help to Buy mortgage?

The Help to Buy mortgage scheme is a government programme that helps first-time home buyers buy a newly built property. This scheme means that the government usually provides a loan of 20% of the value of the house. This means that more people are able to buy a home.

What deposit do you need for a Help to Buy mortgage?

The usual minimum deposit for a Help to Buy mortgage is 5% of the total value of the property. However, you can pay a larger deposit, which would mean your mortgage could be lower. This may make it faster for you to pay off your mortgage.

Is it better to pay off a Help to Buy loan or mortgage?

Ideally, you want to pay off both parts of your Help to Buy mortgage as quickly as possible. Generally, a Help to Buy loan is interest-free for 5 years. You should compare the interest rate of your mortgage and the loan to decide which order to pay them off.

What is the maximum property value for a Help to Buy mortgage?

The usual maximum property value for a Help to Buy mortgage is different in different regions of the UK, so you need to make sure you know the terms of the Help to Buy scheme before choosing a mortgage.

You can compare Help to Buy Mortgages using our quote comparison tool.

Is a Help to Buy mortgage only for first-time buyers?

Yes, the Help to Buy scheme is only for first-time buyers. There are further limitations too – for example, the Help to Buy scheme can only be used on new homes. If you are not eligible for the Help to Buy scheme, you can compare other mortgages.

Is a Help to Buy mortgage a secured loan?

Mortgages are a type of secured loan. This means that there is an asset used to secure the loan. If you do not pay the payment for a secured loan like a mortgage, your house could be repossessed.

What are the negatives of a Help to Buy mortgage?

There are some downsides to consider before getting a Help to Buy mortgage. For example, your loan amount and repayment amount could increase, and fewer mortgage providers offer Help to Buy mortgages than general mortgages.