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Monday 26 April 2021
Monday 26 April 2021
Monday 26 April 2021
Monday 26 April 2021
In April 2021, the government introduced a new Help to Buy scheme, designed to assist first-time buyers in purchasing their first home. This scheme offers an equity loan to make homeownership more accessible, particularly for those looking to buy a new-build property.
How the Help to Buy Scheme Works
Under this scheme, you can borrow:
A minimum of 5% and up to 20% of the property’s value (40% in London).
The percentage borrowed is based on the market value of your home at the time of purchase.
Key Details for Dorset:
Price Cap: £349,000 for properties in Dorset.
Interest-Free Period: No interest is charged on the equity loan for the first 5 years.
Interest from Year 6: You’ll pay a £1 monthly management fee plus 1.75% interest on the equity loan, which rises annually by the Consumer Price Index (CPI) + 2%.
Example of the Help to Buy Scheme
For a property valued at £200,000:
You provide a £10,000 deposit (5%).
The government loans £40,000 (20%).
You secure a £150,000 mortgage (75%).
In the first 5 years, your only payment toward the equity loan is the £1 monthly management fee.
Repaying the Equity Loan
You can repay the equity loan in full or in part at any time, with a minimum repayment of 10% of your home’s current market value.
Full Repayment is Required If:
The equity loan term ends.
You pay off your repayment mortgage.
You sell your home.
You fail to comply with the terms of the equity loan contract.
The repayment amount is based on your home’s market value at the time. If your property’s value increases, the amount owed will also rise. Conversely, if the value decreases, the amount owed will fall.
Why Choose Barrett Mortgages?
Barrett Mortgages is a professional finance broker based in Poole, Dorset, specialising in helping first-time buyers access Help to Buy properties.
What Sets Us Apart?
Personalised Service: We offer tailored advice based on your financial circumstances.
Honest and Trustworthy: We don’t use high-pressure sales tactics. Our recommendations are always in your best interest.
Qualified and Experienced Team: Our staff are chosen for their dedication to providing exceptional service.
Reputation Built on Referrals: We take pride in the trust and recommendations of our satisfied clients.
Get Started Today
If you’re interested in Help to Buy properties in Dorset, we encourage you to explore the details on the official government website.
For personalised advice and support, contact Barrett Mortgages today. Let us guide you through the process of securing your first home and getting on the property ladder with confidence.
In April 2021, the government introduced a new Help to Buy scheme, designed to assist first-time buyers in purchasing their first home. This scheme offers an equity loan to make homeownership more accessible, particularly for those looking to buy a new-build property.
How the Help to Buy Scheme Works
Under this scheme, you can borrow:
A minimum of 5% and up to 20% of the property’s value (40% in London).
The percentage borrowed is based on the market value of your home at the time of purchase.
Key Details for Dorset:
Price Cap: £349,000 for properties in Dorset.
Interest-Free Period: No interest is charged on the equity loan for the first 5 years.
Interest from Year 6: You’ll pay a £1 monthly management fee plus 1.75% interest on the equity loan, which rises annually by the Consumer Price Index (CPI) + 2%.
Example of the Help to Buy Scheme
For a property valued at £200,000:
You provide a £10,000 deposit (5%).
The government loans £40,000 (20%).
You secure a £150,000 mortgage (75%).
In the first 5 years, your only payment toward the equity loan is the £1 monthly management fee.
Repaying the Equity Loan
You can repay the equity loan in full or in part at any time, with a minimum repayment of 10% of your home’s current market value.
Full Repayment is Required If:
The equity loan term ends.
You pay off your repayment mortgage.
You sell your home.
You fail to comply with the terms of the equity loan contract.
The repayment amount is based on your home’s market value at the time. If your property’s value increases, the amount owed will also rise. Conversely, if the value decreases, the amount owed will fall.
Why Choose Barrett Mortgages?
Barrett Mortgages is a professional finance broker based in Poole, Dorset, specialising in helping first-time buyers access Help to Buy properties.
What Sets Us Apart?
Personalised Service: We offer tailored advice based on your financial circumstances.
Honest and Trustworthy: We don’t use high-pressure sales tactics. Our recommendations are always in your best interest.
Qualified and Experienced Team: Our staff are chosen for their dedication to providing exceptional service.
Reputation Built on Referrals: We take pride in the trust and recommendations of our satisfied clients.
Get Started Today
If you’re interested in Help to Buy properties in Dorset, we encourage you to explore the details on the official government website.
For personalised advice and support, contact Barrett Mortgages today. Let us guide you through the process of securing your first home and getting on the property ladder with confidence.
