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Monday 22 February 2021
Monday 22 February 2021
Monday 22 February 2021
Monday 22 February 2021
Getting onto the property ladder is a significant challenge and can feel quite daunting. With so much conflicting advice out there, it’s easy to feel overwhelmed. That’s where we come in. Let our experienced advisors guide you through the entire process—from your initial contact with us to finding out how much you can borrow, understanding the costs involved, and securing an agreement in principle. This will make you a qualified purchaser and a desirable buyer to many estate agents and sellers.
How Help to Buy Schemes Work
Help to Buy schemes are designed to assist first-time buyers in purchasing newly built homes. With these schemes:
Small Deposits: Buyers need only a 5% deposit.
Government Contribution: The government lends up to 20% of the property’s purchase price.
Reduced Mortgage: You’ll need a mortgage for just 75% of the property’s value.
Additionally, the Mortgage Guarantee Scheme allows buyers to purchase either a new build or a pre-owned property. Under this scheme, lenders insure a portion of the mortgage with the government, ensuring they receive that part of the loan back even if the borrower cannot make repayments.
Why a Larger Deposit Matters
While a 5% deposit is sufficient for many schemes, it’s always a good idea to save for the largest deposit possible. A larger deposit reduces the amount you need to borrow, resulting in lower monthly repayments. It also makes lenders less exposed to changes in the housing market or personal circumstances, improving your chances of securing a favourable mortgage.
Family Support
Family members, particularly those with greater financial stability, can play a key role in helping first-time buyers. For example:
Mortgage Guarantors: Older relatives with accumulated wealth may act as guarantors, helping buyers meet affordability criteria set by lenders.
This can be especially helpful for younger buyers who might otherwise struggle to secure a mortgage.
Buy-to-Let Mortgage Advice
In addition to helping first-time buyers, we provide expert advice for buy-to-let mortgages. Whether you’re making a one-time investment or building a property portfolio, our advisors will source options from a range of lenders to find the best product for your circumstances.
Understanding Buy-to-Let Mortgages
Specialised Lending: A conventional mortgage cannot be used for buy-to-let properties.
Higher Interest Rates: Buy-to-let mortgages typically have higher rates than residential mortgages, reflecting the increased risk for lenders.
Interest-Only Option: Many buy-to-let mortgages are interest-only, meaning monthly payments cover just the interest. The loan capital is repaid at the end of the agreement, often by selling the property, with any profits retained by the seller.
Investing in rental properties can be demanding, but for serious investors with strategic plans, it remains a viable and rewarding opportunity.
Get in Touch
If you’re looking for more tailored advice or want to learn more about Help to Buy properties in Bournemouth, contact us today. Our team of expert advisors is here to provide personalised support, whether you’re a first-time buyer or exploring buy-to-let opportunities.
Let us help you take the next step toward achieving your property goals!
Getting onto the property ladder is a significant challenge and can feel quite daunting. With so much conflicting advice out there, it’s easy to feel overwhelmed. That’s where we come in. Let our experienced advisors guide you through the entire process—from your initial contact with us to finding out how much you can borrow, understanding the costs involved, and securing an agreement in principle. This will make you a qualified purchaser and a desirable buyer to many estate agents and sellers.
How Help to Buy Schemes Work
Help to Buy schemes are designed to assist first-time buyers in purchasing newly built homes. With these schemes:
Small Deposits: Buyers need only a 5% deposit.
Government Contribution: The government lends up to 20% of the property’s purchase price.
Reduced Mortgage: You’ll need a mortgage for just 75% of the property’s value.
Additionally, the Mortgage Guarantee Scheme allows buyers to purchase either a new build or a pre-owned property. Under this scheme, lenders insure a portion of the mortgage with the government, ensuring they receive that part of the loan back even if the borrower cannot make repayments.
Why a Larger Deposit Matters
While a 5% deposit is sufficient for many schemes, it’s always a good idea to save for the largest deposit possible. A larger deposit reduces the amount you need to borrow, resulting in lower monthly repayments. It also makes lenders less exposed to changes in the housing market or personal circumstances, improving your chances of securing a favourable mortgage.
Family Support
Family members, particularly those with greater financial stability, can play a key role in helping first-time buyers. For example:
Mortgage Guarantors: Older relatives with accumulated wealth may act as guarantors, helping buyers meet affordability criteria set by lenders.
This can be especially helpful for younger buyers who might otherwise struggle to secure a mortgage.
Buy-to-Let Mortgage Advice
In addition to helping first-time buyers, we provide expert advice for buy-to-let mortgages. Whether you’re making a one-time investment or building a property portfolio, our advisors will source options from a range of lenders to find the best product for your circumstances.
Understanding Buy-to-Let Mortgages
Specialised Lending: A conventional mortgage cannot be used for buy-to-let properties.
Higher Interest Rates: Buy-to-let mortgages typically have higher rates than residential mortgages, reflecting the increased risk for lenders.
Interest-Only Option: Many buy-to-let mortgages are interest-only, meaning monthly payments cover just the interest. The loan capital is repaid at the end of the agreement, often by selling the property, with any profits retained by the seller.
Investing in rental properties can be demanding, but for serious investors with strategic plans, it remains a viable and rewarding opportunity.
Get in Touch
If you’re looking for more tailored advice or want to learn more about Help to Buy properties in Bournemouth, contact us today. Our team of expert advisors is here to provide personalised support, whether you’re a first-time buyer or exploring buy-to-let opportunities.
Let us help you take the next step toward achieving your property goals!
