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Tuesday 29 June 2021
Tuesday 29 June 2021
Tuesday 29 June 2021
Tuesday 29 June 2021
Are you a first-time buyer looking to get onto the property ladder? The Help to Buy scheme could be the perfect opportunity for you. This government-backed initiative helps buyers purchase a home with just a 5% deposit, providing an equity loan of up to 20% of the property’s value (or **40% in London). The remaining amount is covered by a mortgage.
Key Details of the Help to Buy Scheme
Deposit Requirement: At least 5% of the property value (e.g., £10,000 on a £200,000 home).
Interest-Free Loan: No interest is charged on the equity loan for the first 5 years.
Interest After Year 5: Interest payments begin in year 6 on the amount borrowed, but no payments towards the loan capital are required unless you repay at least 10% of the property value or the entire 20%.
Price Cap for South West: The scheme applies to properties valued at up to £349,000 in Dorset and the surrounding areas.
Eligible Properties: Must be purchased from a registered homebuilder.
Preparing for the Help to Buy Scheme
To make the most of the Help to Buy scheme, preparation is essential. Here’s our advice:
1. Organise Your Finances
Lenders want to see that your primary focus is on paying your mortgage. Take these steps to prepare:
Pay Off Debts: Reduce or eliminate any outstanding debts before applying.
Save for Your Deposit: Aim to save at least 5% of the property’s value, and consider saving more for additional costs.
2. Reduce Your Outgoings
Lowering your monthly expenses will help you save for a deposit and manage your mortgage repayments. This also improves your mortgage application by showing lenders that you have minimal financial commitments.
3. Maintain a Clean Credit Score
A good credit score is crucial for securing the best mortgage deals. Take steps to improve or maintain your score before applying.
4. Budget for Additional Costs
Consider putting money aside for:
Solicitor and Survey Fees: These are necessary for the property purchase process.
Stamp Duty: While sometimes included in the mortgage, it’s wise to be prepared for this expense.
Why Choose Barrett Mortgages?
At Barrett Mortgages, we’re more than just a finance broker. We’re a trusted partner dedicated to helping you achieve your property goals.
What We Offer:
Tailored Advice: We provide personalised guidance to make the process straightforward and stress-free.
Expertise Across Mortgages: From first-time buyer mortgages to buy-to-let and self-employed options, we’ve got you covered.
Transparent Service: Our clear, honest, and upfront approach has earned us a strong reputation since our founding in 2009.
Our team is fully qualified, experienced, and committed to delivering the best possible experience for our clients. Referrals from happy clients are the foundation of our success.
Get in Touch
If you’re interested in Help to Buy homes in Dorset or need advice on other mortgage options, contact Barrett Mortgages today.
Let us help you take the first steps towards owning your dream home with confidence and ease.
Are you a first-time buyer looking to get onto the property ladder? The Help to Buy scheme could be the perfect opportunity for you. This government-backed initiative helps buyers purchase a home with just a 5% deposit, providing an equity loan of up to 20% of the property’s value (or **40% in London). The remaining amount is covered by a mortgage.
Key Details of the Help to Buy Scheme
Deposit Requirement: At least 5% of the property value (e.g., £10,000 on a £200,000 home).
Interest-Free Loan: No interest is charged on the equity loan for the first 5 years.
Interest After Year 5: Interest payments begin in year 6 on the amount borrowed, but no payments towards the loan capital are required unless you repay at least 10% of the property value or the entire 20%.
Price Cap for South West: The scheme applies to properties valued at up to £349,000 in Dorset and the surrounding areas.
Eligible Properties: Must be purchased from a registered homebuilder.
Preparing for the Help to Buy Scheme
To make the most of the Help to Buy scheme, preparation is essential. Here’s our advice:
1. Organise Your Finances
Lenders want to see that your primary focus is on paying your mortgage. Take these steps to prepare:
Pay Off Debts: Reduce or eliminate any outstanding debts before applying.
Save for Your Deposit: Aim to save at least 5% of the property’s value, and consider saving more for additional costs.
2. Reduce Your Outgoings
Lowering your monthly expenses will help you save for a deposit and manage your mortgage repayments. This also improves your mortgage application by showing lenders that you have minimal financial commitments.
3. Maintain a Clean Credit Score
A good credit score is crucial for securing the best mortgage deals. Take steps to improve or maintain your score before applying.
4. Budget for Additional Costs
Consider putting money aside for:
Solicitor and Survey Fees: These are necessary for the property purchase process.
Stamp Duty: While sometimes included in the mortgage, it’s wise to be prepared for this expense.
Why Choose Barrett Mortgages?
At Barrett Mortgages, we’re more than just a finance broker. We’re a trusted partner dedicated to helping you achieve your property goals.
What We Offer:
Tailored Advice: We provide personalised guidance to make the process straightforward and stress-free.
Expertise Across Mortgages: From first-time buyer mortgages to buy-to-let and self-employed options, we’ve got you covered.
Transparent Service: Our clear, honest, and upfront approach has earned us a strong reputation since our founding in 2009.
Our team is fully qualified, experienced, and committed to delivering the best possible experience for our clients. Referrals from happy clients are the foundation of our success.
Get in Touch
If you’re interested in Help to Buy homes in Dorset or need advice on other mortgage options, contact Barrett Mortgages today.
Let us help you take the first steps towards owning your dream home with confidence and ease.
