The second part of the government-backed
HELP TO BUY scheme, which aims to help people to buy a home, is set to go live this
month.
The scheme will be available to both
first-time buyers and those looking to move home. All you need is a reasonably clean credit
history, and a 5% deposit.
The scheme enables lenders who
wish to offer mortgages of up to 95% loan-to-value, but are cautious of
accepting all the risks of high loan to value products, the opportunity to buy
a Guarantee from the Government for up to 15% of the loan. The scheme is
available against both new-build and existing homes with a value not exceeding £600,000.
The Guarantee covers cases of
repossession occurring within seven years of the date of the mortgage and compensation
is payable to the lender only if the sale proceeds achieved on repossession are
less than 80% of the original purchase price.
So for example, if the purchase
price of a property is £100,000.00, compensation would only be awarded if the
property is sold for less than £80,000. So
if a price of £65,000 is achieved, then the lender would be compensated in the
region of £15,000.
Suzannne Broughton (Property
Lawyer)
Howard & Over LLP are pleased
to welcome a new edition to their growing Residential Department which is also
based in Ivybridge Plymstock and Devonport. Suzanne specialises in residential
sales and purchases. Please feel free to contact Suzanne on 01752 284053 or by
email: [email protected]
