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Thursday 21 October 2021
Thursday 21 October 2021
Thursday 21 October 2021
Thursday 21 October 2021
Are you looking to buy your first home but need a little extra help? The Help to Buy scheme is a fantastic opportunity for first-time buyers to step onto the property ladder. At Barrett Mortgages, we’re here to help you understand how the scheme works and how to make the most of it.
How Does the Help to Buy Scheme Work?
Deposit: Save at least 5% of the property purchase price.
Equity Loan: The government will lend up to 20% of the property purchase price.
Mortgage: You’ll only need a 75% mortgage to cover the remaining amount.
Regional Price Caps
To qualify, your property must fall within the price caps for your region. In the South West, the maximum price cap is £349,000. For example, a property priced at £375,000 would not qualify.
Interest Rates on the Equity Loan
First 5 Years: No interest.
Year 6: Interest starts at 1.75% of the original loan amount.
Annual Increase: Interest increases each year.
Part Repayments: Reduce your loan balance and corresponding interest by repaying in part or in full. The smallest repayment is 10% of your home’s current market value.
Preparing to Buy Your First Home
Even if you’re planning to buy a home years from now, it’s never too early to prepare. Here are some steps to take:
1. Start Saving for a Deposit
Aim to save consistently each month.
The bigger the deposit, the less you’ll need to borrow, reducing your monthly payments.
2. Lower Your Monthly Outgoings
Reduce non-essential expenses to show lenders you can manage your finances responsibly.
A clean financial record boosts your mortgage approval chances.
3. Pay Down Existing Debt
Focus on reducing or eliminating debt before applying for a mortgage.
Lenders want assurance that your priority will be the mortgage repayment.
4. Bigger is Better
A larger deposit reduces the size of the mortgage you need, lowering your monthly repayments and overall interest.
Why Choose Barrett Mortgages?
At Barrett Mortgages, we pride ourselves on offering clear, honest, and tailored advice to help first-time buyers achieve their homeownership dreams. Our team is experienced, qualified, and dedicated to providing you with the best possible guidance throughout the process.
Contact Us Today
If you’re interested in learning more about the Help to Buy scheme or need advice on buying your first home, get in touch with our friendly team. Let Barrett Mortgages help you secure the best deal and achieve your property goals.
Phone: 01202 733809
Email: enquiries@barrettmortgages.com
Visit: Our office in Poole, Dorset.
Take the first step toward homeownership today, and don’t forget to check out our Google Reviews to see what our happy customers have to say!
Are you looking to buy your first home but need a little extra help? The Help to Buy scheme is a fantastic opportunity for first-time buyers to step onto the property ladder. At Barrett Mortgages, we’re here to help you understand how the scheme works and how to make the most of it.
How Does the Help to Buy Scheme Work?
Deposit: Save at least 5% of the property purchase price.
Equity Loan: The government will lend up to 20% of the property purchase price.
Mortgage: You’ll only need a 75% mortgage to cover the remaining amount.
Regional Price Caps
To qualify, your property must fall within the price caps for your region. In the South West, the maximum price cap is £349,000. For example, a property priced at £375,000 would not qualify.
Interest Rates on the Equity Loan
First 5 Years: No interest.
Year 6: Interest starts at 1.75% of the original loan amount.
Annual Increase: Interest increases each year.
Part Repayments: Reduce your loan balance and corresponding interest by repaying in part or in full. The smallest repayment is 10% of your home’s current market value.
Preparing to Buy Your First Home
Even if you’re planning to buy a home years from now, it’s never too early to prepare. Here are some steps to take:
1. Start Saving for a Deposit
Aim to save consistently each month.
The bigger the deposit, the less you’ll need to borrow, reducing your monthly payments.
2. Lower Your Monthly Outgoings
Reduce non-essential expenses to show lenders you can manage your finances responsibly.
A clean financial record boosts your mortgage approval chances.
3. Pay Down Existing Debt
Focus on reducing or eliminating debt before applying for a mortgage.
Lenders want assurance that your priority will be the mortgage repayment.
4. Bigger is Better
A larger deposit reduces the size of the mortgage you need, lowering your monthly repayments and overall interest.
Why Choose Barrett Mortgages?
At Barrett Mortgages, we pride ourselves on offering clear, honest, and tailored advice to help first-time buyers achieve their homeownership dreams. Our team is experienced, qualified, and dedicated to providing you with the best possible guidance throughout the process.
Contact Us Today
If you’re interested in learning more about the Help to Buy scheme or need advice on buying your first home, get in touch with our friendly team. Let Barrett Mortgages help you secure the best deal and achieve your property goals.
Phone: 01202 733809
Email: enquiries@barrettmortgages.com
Visit: Our office in Poole, Dorset.
Take the first step toward homeownership today, and don’t forget to check out our Google Reviews to see what our happy customers have to say!
