Help to Buy Mortgages in Nottingham
Mortgage Broker in Nottingham | Help to Buy Scheme
To help kick start the property market, the Government has launched a series of schemes. These took place after the credit crunch of the mid-2000s. A vast majority of these schemes launched were the leading foundation of Help to Buy in Nottingham programs, they were designed to get people onto the property ladder. Here at Nottinghammoneyman, were here to explain to you how they operate.
Help to Buy Equity Loan in Nottingham
The Help to Buy Equity Loan was perhaps the most popular of the schemes launched. You can only use this loan when you buy a new build property. It is not available on pre-owned homes. You put down a 5% deposit on the house and then borrow up to 20% from the Government.
The loan is interest-free for five years. Remember, it is a loan, not a gift, so you have to pay it back. Ideally, you would want to start saving up towards this as soon as you complete it. It may be possible to remortgage your home in 5 years to raise capital for this too. If you do not repay the loan after five years, fees start to apply, and they go up each year.
The Government participates in any increase or decrease in the value of the property. Therefore it’s possible that you have to pay back much more than the original amount.
Forces Help to Buy Scheme
If you are in the Armed Forces, then you may be able to borrow towards the deposit at 0% via the Forces Help to Buy. You would repay the loan each month from your salary. An excellent scheme as you don’t pay back any more than the amount you borrowed.