Apply for a Help to Buy Mortgage With Lending Expert
If you are interested in a Help to Buy Scheme, you can check your eligibility with Lending Expert today and get one step closer to having your dream home. Use our calculator and table provided and simply click on ‘Get a Quote’ to start the process. Enter some basic details in less than 5 minutes and our team will come back to you with a personalised quote.
What Is the Help To Buy Equity Loan and How Does It Work?
The government’s Help to Buy Equity Loan is a scheme that enables you to get an equity loan towards the cost of buying a new-build home as a first-time buyer.
You pay a minimum deposit of 5% of the property purchase price, and arrange a repayment mortgage of at least 25% of the property purchase price. You can then borrow an equity loan to cover between 5% and 20% of the property purchase price of the new-build property – in London, this rises to 40%.
The equity loan percentage that you borrow is then used to calculate your interest and equity loan repayments.
Can I Get a Help to Buy Mortgage?
In order to get a Help to Buy mortgage, there’s some criteria that you must meet, and some that your property must also meet.
You Need To:
- Be 18 years of age or older.
- Be a first-time buyer.
- Be able to afford the fees and interest payments.
- Never have owned a home or residential land, in the UK or abroad.
- Never have had any form of Sharia mortgage finance.
- Apply jointly if you are married, in a civil partnership, or cohabiting with your partner and intend on continuing to do so.
The Property Must Be:
- A new build.
- Sold by a Help to Buy registered homebuilder.
- The only home you own and live in.
- Under the maximum property purchase price limit – this depends on where you live, and the limit is highest in London.
What Is the Help To Buy ISA?
You can longer apply for a Help to Buy ISA. If you have already set one up, you can pay in up to £200 per month, until November 2029. When you come to buy your first home, the government will top up your savings by 25%, up to £3,000.
If you are buying with someone who also has a Help to Buy ISA, you will both receive the bonus. You can claim the bonus until November 2030.
As an example, if you have saved £12,000 in your Help to Buy ISA and so has the person you intend to buy with, you will both receive the maximum bonus of £3,000 from the government. This would bring your combined savings up from £24,000 to £30,000.
Can I Remortgage My Help To Buy Home?
Yes, you can remortgage your Help to Buy home. There’s different processes and criteria for remortgaging your Help to Buy home depending on if you want to borrow more money or not.
How To Remortgage My Help To Buy Home Without Borrowing More Money
If you want to remortgage your Help to Buy home without borrowing more money, you need to contact the government Help to Buy scheme. You’ll then have to get all your paperwork ready to send to them alongside your application form. Once you’ve then paid your administration fee, you just need to wait for a decision.
How To Remortgage My Help To Buy Home and Borrow More Money
To remortgage your Help to Buy home and also borrow more money, you’ll need to check your eligibility, get a redemption statement, check your new lender is qualified, ask for a breakdown of their services, find a conveyancing solicitor, and pay any arrears.
Can I Change the Ownership of My Help To Buy Home?
Yes, you can add, replace, or remove a homeowner from your equity loan contract for your Help to Buy home. You should always consider how these changes may affect you individually, so we recommend speaking to our team of experts first!
Add a Homeowner:
In order to add a new homeowner, they must also be eligible for a Help to Buy Equity Loan. This means that they must be a first-time homebuyer, never have owned a home or land in the UK or abroad, and never have had any form of Sharia mortgage. They will need to complete an eligibility check before they can be added as a homeowner.
Replace a Homeowner:
In order to replace a homeowner on the equity loan contract, you’ll need to add a homeowner and remove a homeowner in one application. You’ll add the person you’d like to become a homeowner, and remove the person you no longer want to be a homeowner.
Remove a Homeowner:
One of the homeowners on the original equity loan must stay the same until the equity loan has been repaid in full. The homeowners named on the equity loan need to be the same as those on the repayment mortgage.
Usually, you can change a homeowner on the equity loan twice during its lifetime. All homeowners on the contract will still need to show that they can afford it. If you’re increasing the length of your repayment mortgage alongside changing names, the equity loan term may be changed to match the term of the repayment mortgage.
What Information Do I Need for a Change of Ownership?
You will need a variety of information, permission and documents for a change of ownership. This can include the following, categorised by the original homeowner, the new homeowner and both…
The Original Homeowner:
- Your solicitor’s details.
- Permission from your repayment mortgage lender to change ownership.
The New Homeowner:
- Proof of identity certified by your solicitor.
- Proof of address.
- Your contact details.
- Proof of income including: your last 3 months’ wage slips and most recent P60 if you’re employed, your SA302 or 4 years’ accounts if you’re self-employed, details of additional income, and details of household and personal expenditure.
See the government’s ‘how to change ownership of your Help to Buy home’ for more useful information.