A mortgage under the Help to Buy: mortgage guarantee scheme works like any other mortgage. Your lender will check that you can afford the mortgage and that you do not have a history of payment difficulties.
To qualify for a mortgage supported by Help to Buy: mortgage guarantee:
- the property you are purchasing could be an existing or new build home in the UK, priced up to £600,000
- you must not own any other property anywhere in the world at the time you buy your home supported by the Help to Buy: mortgage guarantee scheme
- your mortgage must be a repayment one, not interest only. Offset and guarantor mortgages are also excluded from the scheme
- you cannot let out the property to somebody else
- your mortgage can be taken out by an individual or individuals but not by a company
- other than using a Help to Buy: ISA to boost your savings, you cannot use the Help to Buy: mortgage guarantee scheme with any other government home-buying scheme such as Help to Buy: Equity Loan, Shared Ownership or Right to Buy. Your deposit for the property cannot come from publicly-assisted loans
- you don’t have to pay any additional fee to the Government to get a Help to Buy supported mortgage
- the size of the mortgage you apply for must be less than 4.5 times your income.
The Help to Buy: mortgage guarantee scheme will run until 31 December 2016.