The Help to Buy Mortgage Guarantee scheme is now launching on the 7th October 2013

What is it ?
Basically the government will be guaranteeing a certain percentage of someone's mortgage to a lender, which will enable the lender to offer 95% mortgages at competitive rates. The buyer will still own 100% of the property

Therefore you will be able to buy with only a 5% deposit, something that has been restricting the mortgage and housing markets for the last several years.

Who can apply ?
To qualify for the scheme, you will need to meet the following criteria:

  • Available on resale and new build properties in the UK
  • Available to all home movers
  • Applies to properties up to the value of £600,000
  • Must be a residential repayment mortgage,( not a buy-to-let or interest only mortgage)
  • Buyer must meet the lender's normal criteria in terms of what they can borrow, credit score etc

What lenders are involved ?
As the government brought the scheme forward by 3 months, not many lenders were prepared for this. However as the weeks go one, more and more lenders will offer products, using an independent broker to find the best deal is a must.

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