Helping you onto the housing ladder

The government announced the Help to Buy scheme in March of 2013. It is intended to help first time buyers to get onto the housing ladder and help existing homeowners to move up a rung or two. Simpsons can help you explore these options, and make sure you are getting the best possible mortgage.

Contact us to find out more

Expert advice on how, and whether, to pursue the Help to Buy scheme

Simpson and Partners has been providing expert financial and mortgage advice for more than seventeen years, to help you choose the best way to buy your new home. Contact us today to book an evaluation of your financial position.

Eligibility for Help to Buy

For a first time buyer or an existing homeowner to be eligible for a Help to Buy mortgage, the requirements are:

  • The buyer must be able to pay
    a minimum 5% deposit

  • The home to be bought must be
    worth no more than £600,000

  • The home must be intended as
    the buyer’s primary residence.

  • The home may not be let out, or
    used as a second or holiday home

  • Interest-only mortgages are not eligible for the Help to Buy scheme

Mortgage Guarantees on the Help to Buy Scheme

Under the first element of the Help to Buy scheme, if a buyer can pay a deposit of between 5% and 20% of the property’s value, they can take out a mortgage with any participating lender for the remaining 95% to 80%. The government undertakes to pay the lender up to 15% of the value should the borrower default on the mortgage, making the loan substantially less risky for the lender. Simpson and Partners have ongoing working relationships with many banks and financial services organisations, so we can be of help finding participating lenders.

Equity Loans on the Help to Buy Scheme

The second element of the Help to Buy scheme makes interest free loans available for of up to 20% of the value of qualifying new build properties. This can be used in addition to your minimum 5% deposit to put more modestly priced 75% mortgages within your reach.
Help to Buy loans of this type are only interest-free for the first five years, though. After the 5th year, a monthly admin fee is due, starting at 1.75% of the loan amount and going up by 1% plus any rise in the consumer price index each year. The loan must be paid in full within 25 years, when the term of the mortgage is complete, or upon the sale of the home, whichever comes first. You may also repay the loan early, with certain conditions.

To Sarah, Emma and Brendan,

Thank you all for your help with our move to Keyston, especially Sarah who has been like a friend to me! You’re all such lovely people and I would recommend Simpson and Partners at Kimbolton.

Thanks Again, Angelina, Jon, Georgia, Ellie and Javier May.

Dear Sarah,

We just wanted to thank you so much for all your hard work, advice and buckets of patience! We are over the moon to finally be in Shelton and we appreciate so much all that you did for us.

The Johnsons.

Emma,

A huge “thank you” for everything you have done with the purchase of our house. You’ve been very kind and patient along with being very helpful. You’re a credit to the company and we wish you all the best for the future.

Best Wishes

Michelle and Paul Alexander

Dear Clem,

Thank you for your special help during our house purchase. It really does make a difference to us old fussy customers when people are nice, bright and kind as you go that extra mile. So we wanted to say Thank You for always being outstanding with all the phone calls you have had to answer from us and treating us as if we mattered.

Best Wishes

David, Lesley-Ann and Honey-Rose Carter