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Guide to Government Home Ownership Schemes

There are a number of Government backed initiatives available that could make the dream of owning your ideal home a reality.

Government HomeBuy Guide

If you need a hand to get onto the property ladder or to move up the ladder you may be able to get some help through a home ownership scheme. There are currently 4 types of schemes available:

Help to Buy

Help to Buy is a Government scheme to help thousands of people buy their own home.

There are now two schemes available - 'Equity Loan' and 'Mortgage Guarantee' which are designed to increase the supply of low deposit mortgages and new build homes available.

Help to Buy could help you if:
+ you have a low deposit
+ you are a First Time Buyer or existing homeowner looking to get on, or move up the property ladder
+ you have a small deposit but can afford repayments on an 80-95% mortgage

Equity Loan (available in England and Scotland)
+ New build only
+ Only a 5% deposit needed
+ Available to all First Time Buyers and existing homeowners
+ The Government will lend you up to 20% of the value of your new build home. The loan can be repaid at any time or on the sale of your home, this means it is interest free for 5 years.*
+ This means you’ll only need a mortgage of 75% Loan to Value (LTV) – which could mean a better mortgage rate than on a higher LTV!
+ Maximum home purchase of £600,000

*Unlike the mortgage amount borrowed, the Government's loan is an equity loan so will rise and fall in line with the property's value changing. The loan is interest free for 5 years. After 5 years the loan will be subject to an annual charge of 1.75% that will rise each year by the Retail Price index plus 1%. The outstanding loan will need to be repaid upon the sale of the property. Fees don't count towards repaying back the equity loan.

Mortgage Guarantee (available across the UK)
+ New Build and existing homes
+ Only a 5% deposit needed
+ Available to all First Time Buyers and existing homeowners
+ The Government will guarantee up to 15% of the value of your home with your lender
+ This means you'll have access to low deposit mortgages ranging from 80-95%
+ Maximum home purchase of £600,000

Shared Ownership

Under the ‘shared ownership’ scheme individuals are able to buy part of a property and pay rent on the outstanding share.

The share you purchase will need to be funded by yourself using a mixture of your savings (your deposit) and a mortgage.

Usually, the housing association purchases the remaining share and will charge you rent. If you wish, you may be able to purchase further shares in your home at a later date. This is known as ‘stair casing’.

NewBuy

NewBuy is a collective effort from the Government, house builders and mortgage lenders to provide 95% loan to value mortgages for buyers who only have a small deposit. To qualify for NewBuy, you can be a First Time Buyer or an existing home owner, you must be a UK citizen, buying a new build home in England with a value of up £500,000.

If you are interested in applying for any of the Government run schemes and want to find out more about the options available, Countrywide Mortgage Services can help. Phone us today on 0800 988 7925 or request a call back to arrange an appointment with your local Mortgage Consultant who will have a wealth of knowledge and expertise in the mortgage market.

Countrywide Mortgage Services, Countrywide House, 88-103 Caldecotte Lake Drive, Caldecotte, Milton Keynes, Buckinghamshire, MK7 8JT.

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

A fee will be payable for arranging your mortgage. Your Mortgage Consultant will confirm the amount before you choose to proceed.

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