There is help out there for you to buy a new home

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The Galloway News - - PROPERTY - Lor­raine Howard

Now is a great time to buy your new home – with Help to Buy you could find the home that’s right for you with just a five per cent de­posit.

Whether you’re look­ing to take the first step on the prop­erty lad­der or are search­ing for some­thing big­ger to ac­com­mo­date your grow­ing fam­ily – new is for every­one and with mort­gage rates at an all-time low it’s eas­ier to get the home you want for less.

With a Help to Buy eq­uity loan you could find the home that’s right for you with just a five per cent de­posit - the Scot­tish Govern­ment will lend you up to 15 per cent of the prop­erty value through an eq­uity loan.

You’ll only need to se­cure up to an 80 per cent mort­gage from a bank or build­ing so­ci­ety, mak­ing that first step a lit­tle eas­ier.

For 2016/17 the max­i­mum prop­erty value is £230,000 with the Help to Buy (Scot­land) Af­ford­able New Build Schemes.

The main Help to Buy (Scot­land) Af­ford­able New Build Scheme is avail­able to larger home­builders while the Help to Buy (Scot­land) Smaller De­vel­op­ers New Build Scheme is avail­able to smaller home builders. The rules to both schemes are iden­ti­cal and the agents ad­min­is­ter­ing the schemes will iden­tify which scheme your ap­pli­ca­tion is to be pro­cessed un­der.

The schemes are only avail­able on new build homes from par­tic­i­pat­ing home builders and on homes up to a max­i­mum value of £230,000 for pur­chases which com­plete on or be­fore 31 March 2017 and £200,000 for pur­chases on or be­fore 31 March 2018.

Your mort­gage lender is likely to re­quire you to con­trib­ute a de­posit of around five per cent, your mort­gage and de­posit must cover a com­bined min­i­mum 85 per cent of the to­tal pur­chase price.

Your mort­gage from one of the par­tic­i­pat­ing lenders must be a re­pay­ment mort­gage, of at least 25 per cent and can­not be an in­ter­est-only first mort­gage; the Scot­tish Govern­ment will help buy­ers to pur­chase the prop­erty by tak­ing an eq­uity stake of up to a max­i­mum 15 per cent of the value of the prop­erty; no an­nual in­ter­est is charge on your eq­uity stake; the Scot­tish Govern­ment’s eq­uity stake can be re­paid at any time and is based on the value of the prop­erty at the time of the re­pay­ment; the scheme is only avail­able to those who are un­able to af­ford to pur­chase the prop­erty with­out the Govern­ment pur­chas­ing an eq­uity share there are cur­rently eight par­tic­i­pat­ing lenders of­fer­ing mort­gages for the Help to Buy (Scot­land) Af­ford­able New Build schemes, please con­tact them to check what their lend­ing cri­te­ria is.

If you are in­ter­ested in the scheme, you should read the in­for­ma­tion leaflet for buy­ers which will pro­vide you with im­por­tant in­for­ma­tion on how the scheme op­er­ates.

Once you have read the in­for­ma­tion leaflet, you will need to search for Help to Buy Af­ford­able New build homes that are for sale by a par­tic­i­pat­ing home builder.

You should also speak to an In­de­pen­dent Fi­nan­cial Ad­vi­sor, good ad­vice could save you money and a lot of worry.


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