At Leek United we are pleased to support the Government's Help to Buy equity loan scheme. Help to Buy loans are available through the Homes and Communities Agency for First Time Buyers and home movers who would like to buy a new build property.
We would love to speak to you about our Help to Buy mortgage products. To arrange an an appointment with one of our Qualified Mortgage Advisers please click on the link below.
Contact our Direct Mortgage Team
This is a Government-backed scheme, designed to help people who have smaller deposits to buy a newly built home in England and Wales.
The scheme in England is managed by the Homes and Communities Agency (HCA) who are the national housing regeneration agency for England.
The scheme in Wales is managed by Help to Buy - Wales.
With Help to Buy - Equity Loan:
If you can answer yes to all of the following questions, and you can meet Leek United's current lending criteria, you may be able to buy a property under the scheme:
This means you will have two ‘loans’ in place to buy your home;
As the two ‘loans’ are managed separately by two different providers, you will pay two separate Direct Debit payments. So it’s important that you remember from year 6, you will also need to repay the interest on your equity loan monthly, as well as the monthly payment you have been making on your mortgage.
The example below shows how this works on a property worth £200,000.
The equity loan must be repaid after 25 years or earlier if you sell your home. You must repay the same percentage to the Government as the initial equity loan, i.e. if you took an equity loan of 20% to help buy your home, you would need to repay 20% of your homes value in the future when you came to either sell, or repay your equity loan. The diagrams below shows the amount you would repay on your equity loan which is linked to the future value of your home. Please note, the value of the equity loan could go up or down. After 25 years if you have not sold the property and the mortgage has not ended, you must repay the full amount borrowed. If you do not have the savings to pay this then you will have to the sell the property.
Before approaching a mortgage provider, you should ensure that you obtain the ‘Authority to Proceed’ from the Homes and Communities Agency (HCA) if your property is in England or Help to Buy - Wales if your property is in Wales as this will be required at the initial mortgage interview.
At Leek United we aim to provide a comprehensive service regarding your home - providing a range of other services, including information on buildings and contents insurance as well as financial planning advice.
Click on the relevant link for more information.Buildings & Contents insurance