Help to Buy: Mortgage Guarantee Scheme and Equity Loan Advice

Your home may be repossessed if you do not keep up repayments on your mortgage.

This is a new initiative provided by the Government to help first time buyers or current home owners who wish to buy property but have limited funds.

There are two choices…

1. Equity Loan Scheme:

This is only available in England. It allows you to borrow up to a fifth of the value of a NEW BUILD property directly from the Government with the property valued at up to £600,000. There is a similar scheme in Scotland, though property value cannot exceed £400,000.

Note: The government DOES NOT charge interest on the money lent for the first five years via the Equity Loan Scheme which is helpful.

2. Mortgage Guarantee Scheme:

This is available across all UK; England, Northern Ireland, Scotland and Wales and can be used for NEW BUILD or PRE-OWNED PROPERTY.

If you can only save a small deposit, the government will provide the rest, guaranteeing payments for part of the mortgage if you lose your job or become ill, and are therefore unable to work and make your own payments.

Note: The government DOES charge interest on the money lent for whole duration of the loan made under the Mortgage Guarantee Scheme.

IMPORTANT: If you wish to take advantage of this government backed help to buy a house or flat, then it’s best to make enquiries as soon as possible because the Equity Loan Scheme closes in April 2016 while the Mortgage Guarantee Scheme closes in October 2016.

Note: For both schemes you must prove you can afford mortgage payments and meet your specific lenders conditions which vary according to whether you apply to get a mortgage from a bank, building society or a special mortgage lender.

Both ‘Help to Buy’ schemes are NOT available for those who wish to purchase property in order to let it out to those wishing to rent property (ie Buy to Let).

You CANNOT use ‘Help to Buy’ for a second home.

If you have questions concerning help to buy for your mortgage, please do give me a call. I will be happy to help. It’s free from a landline on 0800 321 3508 or call my mobile on 07803 508 187.

Contact me by email here…

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The Financial Conduct Authority does not regulate advice on tax planning.

Call William…

Free from a landline: 0800 321 3508

Or click to call to his mobile : 07803 508187

Financial Advice

William on BBC Radio

Here is an interview William gave on BBC Radio Scotland where he
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and Investment ISA’s

Listen to the BBC show here

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Dates and Times

NOTE: I have been writing articles here since 2007 so please take note the date of the article, because obviously, things like laws or tax allowances etc may have changed since then.

I do try my best to keep up to date, but I'm only an humble advisor and there are hundreds of my financial articles here! Please call or email if you need to double check something. I'll gladly help.