Help to Buy Scheme

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:

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