Help To Buy Mortgages
With as little as a 5% deposit, you can buy a home with a help to buy mortgage.
This government scheme gives you access to an equity loan from the government to boost your deposit by around 20% making it possible for you to secure a mortgage as well as lower monthly repayments.
Talk through all your options with our highly experienced mortgage brokers who will be there to support you through the process from beginning to end.
Call our expert Help to Buy mortgage advisers in Birmingham today. We’ll take our time to understand your financial situation and discuss all your right choices for home ownership with you. Call us today on: 0345 066 6555 or drop in to see us in Birmingham at Coleshill Road.
What is the Help to Buy Scheme
How does Help to Buy work?
If you have a deposit of at least 5% you can add an equity loan from the government for 20% (40% in London) of the price of the property. The loan must be repaid after 25 years and is interest-free for five years. After 5 years interest will be charged at 1.75%.
For the remaining 75% of the property price (55% in London) you’ll need a Help to Buy mortgage.
Who is eligible?
The Help to Buy scheme is available for first time buyers buying a newly built home that will be their main residence. The price of the property must not exceed the government cap for your area. This is around: £225,000 for the North, £400,000 for the South and £600,000 for London.
Deposit and LTV (Loan to value ratio)
Most lenders expect you to have a deposit of around 15% so with your enhancement from the equity loan, you’ll have an advantageous 25% deposit (45% in London). With a bigger deposit, you’ll be able to reduce your loan to value ratio (LTV) and secure lower monthly repayments.
About Help to Buy Mortgages
You’ll find plenty of options for Help to Buy mortgages because your improved LTV makes you more appealing to lenders as you are a first time buyer borrowing a smaller amount.
Fixed rates and variable rates
A fixed rate mortgage will require you to pay a set amount each month. With a variable rate mortgage your monthly payments can be increased at your lender’s discretion however the monthly payments for variable rate mortgages tend to be lower.
Mortgage terms
Mortgage terms set out how long your mortgage will last. Most mortgage terms are set for 25 years sometimes 35 or even 40. At the end of the terms your mortgage will be paid off. Longer terms mean lower repayments although it will also take you longer to pay off your mortgage.
How is a Residential Mortgage Calculated?
In most cases, you can get a mortgage for around 4.5 times the value of your annual income. With a 25% deposit you’ll have a LTV of 75% (55% for London). So if you purchased a property worth £200,000, with an LTV of 75% your mortgage would be for £150,000 (£110,000 for London for an LTV of 55%).
Discuss all your options and financial goals with our experienced Help to Buy mortgage adviser in Birmingham today. Our experienced mortgage brokers will help you find the right product for your financial situation. Call: 0345 066 6555 or drop in to see us at Coleshill Road, Birmingham.
More equity loan mortgage questions? You can also read the government’s guide to Help to Buy equity loans
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
What our customers say about us
Blossomfield mortgages were very helpful to me and my partner when we first enquired about whether we were mortgageable to buy our first home. We were very impressed with their professionalism. Best mortgage broker in Birmingham!
Sam Ansell
Amazing service provided by Blossomfield in a quick and timely manner. No matter what questions we had they were always willing and happy to answer with their wide knowledge and experience. Would recommend Blossomfield to anyone.
Geraldene Marsh
Excellent service, quick turnaround, as promised. Will be using again and again. Would highly recommend Blossomfield Mortgages.
James Dean
Excellent service from Blossomfield Birmingham, they were able to sort a mortgage out for me very quickly and made the whole process simple and stress free, always available when needed and provided regular updates.
Jack Moriarty
I approached Blossomfield regarding a mortgage using there Birmingham branch and the service I have received has been nothing short of amazing their efficiency and passion to get everything done and approved in a professional manor is astounding.
Ryan James
Blossomfield Mortgages provided fantastic advice. Our mortgage approval went through very fast, as our mortgage was handled with the utmost urgency. From start to finish, the whole process was a breeze. We sat back and let them handle all the hard work.
Lewis Jewsbury
What our customers say about us
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Frequently asked questions...
I am a first-time buyer. Will you help me throughout the process?
I am a first-time buyer. Will you help me throughout the process?
Yes, whether you are a first-time buyer or someone who has moved several times, you will receive personalised one-to-one guidance from a fully qualified mortgage broker the moment you interact with us.
How much deposit do I need to get a mortgage?
How much deposit do I need to get a mortgage?
This will depend on the mortgage lender and your individual circumstances. Typically, the minimum deposit required to obtain a mortgage is 5% of a property value. Government schemes such as Help to Buy, Right to Buy or shared ownership can help you access a mortgage with a lower deposit and competitive rates.
Many lenders will ask for a 10% deposit or more and reserve the best rates for borrowers with a deposit of 25% or more.
A general rule is that the bigger the deposit you have, the cheaper the mortgage deals you will be able to access. This is because lenders can afford to offer cheaper rates to borrowers with larger deposits, as big deposits reduce their risk of losing money if you don't keep up your repayments.
Do lenders charge fees, and will they be refunded if my mortgage is declined?
Do lenders charge fees, and will they be refunded if my mortgage is declined?
Lenders sometimes charge fees, and these may be payable on application and some on completion of the property purchase. Some fees may be refundable. Your mortgage broker will explain applicable fees – including if they are refundable - and when they would be due. Your mortgage broker will always provide you with an ESIS (mortgage illustration) for any mortgage they discuss with you, and this will clearly show the breakdown of any fees and their terms.
