• Mortgage Guarantee Scheme

    A mortgage supported by the Help to Buy: mortgage guarantee scheme works in exactly the same way as any other mortgage except that under the scheme the Government offers lenders a guarantee on mortgage loans.


    Because of this support, lenders taking part are able to offer home buyers more high-loan-to-value mortgages (80-95%).
    You will still be fully responsible for your mortgage repayments. So if you have a 5% deposit, you will need to take out and pay back a 95% mortgage.


    Example: for a home with a £200,000 price tag

  • Equity Loan Scheme

    With a Help to Buy: equity loan the Government lends you up to 20% of the cost of your new-build home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.

    You won’t be charged loan fees on the 20% loan for the first five years of owning your home.

    Example: for a home with a £200,000 price tag

  • If you then sold home in the example for £210,000, you’d get £168,000 (80%, from your mortgage and the cash deposit) and you’d pay back £42,000 on the loan (20%). You’d need to pay off your mortgage with your share of the money

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