** The Help to Buy: mortgage guarantee scheme was a limited scheme which finished at the end of 2016 **
The Mortgage Guarantee scheme makes it possible to purchase a pre-owned or new build property under £600,000 with a 5% deposit. It could get your home-moving ambitions back on track.
Here’s a quick summary of the important bits:
Help to Buy is a government-backed scheme to support buyers who may previously have struggled to raise a sizeable deposit. It’s the same as a traditional mortgage, except the government guarantees a portion of the loan to an affiliated lender (though the agreement is between the lender and the government, not you!).
The Mortgage Guarantee scheme can only be used for property you intend to occupy, and must be your only property. A minimum deposit of 5% of the property value will be required. The rest is par for the course – as long as you tick the lender’s boxes in terms of credit score and loan-to-income ratios. Another thing to note is that the scheme only applies to repayment mortgages. Interest-only and self-certified mortgages are not included.