There are two types of Help to Buy Mortgages which both serve different purposes. Help to buy Mortgages in Chelmsford are available for all the New Build properties in Chelmsford that are currently being or have been built. We will look at them individually so you can determine which option may be more suitable, how to qualify for one and how to apply.
An equity loan is a type of Help to Buy Mortgage.
With a Help to Buy Mortgage: Equity Loan the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.
You won’t be charged loan fees on the 20% loan for the first five years of owning your home.
– See more here EQUITY LOAN
If you can’t quite afford the mortgage on 100% of a home, Help to Buy: Shared Ownership offers you the chance to buy a share of your home (between 25% and 75% of the home’s value) and pay rent on the remaining share. Later on, you could buy bigger shares when you can afford to. –
See more here: SHARED OWNERSHIP MORTGAGES
How to apply
Step 1 – There are two Help to Buy Mortgage schemes; Shared Ownership and Equity Loan. This step is to work out how much you can borrow using the equity loan scheme. You do not need this element for a shared ownership mortgage, as you are simply purchasing a share of the properties value. You do not need to worry about Step 1 step for Shared Ownership. The remaining steps will take care of Shared Ownership Schemes. However at this stage you could end of with either scheme. It depends on what scheme is attached to the property you are purchasing.
Step 2 – Find your Help to Buy Agent. A Help to Buy Agent will be able to help you with everything you need in order to work out the best scheme, find a property and apply. You can use the below link to find an agent for your area, understand the rules applied to your area and find properties that support the schemes.
Step 3 – Request a Mortgage Quote to make sure the repayments are affordable.
Step 4 – Request a Mortgage Agreement In Principle with the lender you have been quoted with in Step 3. This will carry out a credit score, and if succesful will provide you a Mortgage Certificate. You can show this to the developer or estate agent, who will take you more seriously with a Mortgage Certificate, as it proves you are “good for the money” and confirms the amount you can borrow.
Step 5 – Find a Help to Buy Property within the budget range agreed within the previous step. You can do this by using the following links:
Always look for Help to Buy logos on the properties when searching in other websites such as rightmove. When searching on the Help to Buy website, look at properties for sale. They will then show if they are an equity loan or a shared ownership scheme.
Step 6 – Once you have found a suitable property and placed an offer which has been accepted, you will most likely need to put a holding deposit down of around £500. This can vary. You will be supplied with a Reservation Agreement. Hand this to your Mortgage Chain Broker or upload it to our document store along with a Property Information Form (Below) which you will need to fill in. Once your Mortgage Chain Broker has the documents, they will be able to apply for both the Mortgage and Help to Buy Scheme.
Once you have these two forms, use the link below to upload them to Mortgage Chain and we will contact you to start the Mortgage Application.
And thats it. 6 Simple steps to help you with a help to buy property.
If you have any questions, please get in touch.
Chelmsford Help to Buy Team:
> 01245 333 222 or email@example.com