The Help to Buy scheme may help first time buyers to get on the property ladder – providing you have perfect credit and a cash deposit as well as sufficient income to cover your mortgage application.
Despite a lot of mis-reporting in the press, the money doesn’t come from the Government. First time buyers don’t queue up for a cash payment. Instead, the Government guarantees to the mortgage lender that if the lender lends you most of the money that it will pay the difference between the money you borrow and your deposit if everything goes wrong and house prices fall again.
This means you still have to go through the process of qualifying for a standard mortgage with a lender. Only if the lender is happy to lend to you, will the Government step in – not the other way around.
So if you’re self-employed, newly arrived in the UK or have any kind of adverse credit history in the last 6 years Help to Buy is unlikely to help you. even if it can, it’s expensive.
The Daily Mail recently published a story on this (read here)
At Property Exchange UK we find many people who want to buy are still not able to even with Help to Buy.
If that’s you, then don’t worry. We have an alternative. Some of our properties are available without needing a mortgage upfront to buy. Ask Lindsay or John for details of properties you can buy without needing a mortgage.