The Help to Buy scheme has received a mixed reaction from the public, with some people saying that it has helped them get on to the property ladder, and others saying that the housing market has been distorted as a result of the scheme. How do you know if the scheme really is worth pursuing in order to buy your dream home?
There are a number of advantages to the scheme, in addition to a few disadvantages to consider. However, despite the small number of drawbacks, it may be worthwhile applying for the Help to Buy scheme. If you are eligible for the scheme you will be able to buy a property with a smaller deposit, 5% in many cases. Saving a 5% deposit is much easier and means you will be in a position to buy much more quickly.
In the first five years of having a Help to Buy loan, you won’t pay any interest on it, although you will be charged interest on the amount outstanding after this five-year period. This will make it easier financially during the first few years of being a homeowner.
As you have a Help to Buy loan, you will be eligible for mortgage deals which are much lower than if you were to apply for a 95% mortgage away from the scheme.
There are many advantages to the Help to Buy scheme and a CeMAP trained mortgage adviser will be able to help maximise the benefits and be aware of any potential pitfalls.