We are the Help to Buy Mortgage Experts

5 x joint income is the maximum any Help to Buy mortgage provider will lend.

Although this is a very rough calculation, it is a good starting point when calculating what your potential maximum mortgage might be.

There are many factors that could lower the maximum amount. These can be; credit card debt, personal loan payments, car finance, dependants, pension payments, student loan repayments, etc. One or many of these commitments can dramatically reduce the amount of mortgage that a lender is prepared to offer you.

Important: When taking a Help to Buy Equity Loan, the lenders will take the interest payments, you pay on the loan (payable after 5yrs), in to account when calculating how much they will lend you.

Do some research - try different mortgage lenders.

All the Help to Buy mortgage lenders have online affordability calculators, that will give you an accurate [maximum] mortgage amount you are able to borrow. You simply enter your income and your outgoings and the calculator does the rest - most take no longer than 2 minutes to complete. Try a few and see who is prepared to lend you the mortgage you need.

Poor Credit - We have options.

We specialise in helping people with poor credit arrange their Help to Buy mortgages. The rate you pay and the maximum mortgage amount available to you depends on the severity of your credit.

The worse your credit history, the higher the rate you will pay and the smaller the maximum mortgage amount will be.

Proof of Identity:
Passport
Driving License

Proof of Address:
A gas or electricity bill dated no later than 3 months
Last 3 months bank statements

Proof of Income
[employed] Last 3 months payslips
[self-employed] Last 3 years Tax Computations (SA302) & Tax Year Overviews
[both] Last 3 months bank statements showing salary credits

Step 1: Find a Help to Buy home

Homes that are sold under the Governments Help to Buy Equity Loan scheme are managed by local Help to Buy agents, who have the authority to give the go-ahead for you to purchase a home with the help from the equity loan scheme.

Only new build homes are available under the Help to Buy scheme.

To find a list of Help to Buy houses, in the area you want to live, you will need to find your local Help to Buy agent. The www.helptobuy.gov.uk offers a handy map here. Once you are on relevant agents website, you can search for all Help to Buy developments in that area.

Step 2: Get your finances in order

What size of mortgage do you need and do you pass the lenders affordability calculation? Here is a quick calculation we will often start with:

• £200,000 - Purchase Price
• £40,000 – 20% Help to Buy Equity Loan
• £10,000 – 5% Cash deposit from buyer (you)
• £150,000 – 75% Mortgage Required
• £150,000 / 4.5 = £33,400 – Joint income required for this mortgage to be affordable

Most Help to Buy mortgage lenders will not lend more than 4.5 x income because they take in to consideration the interest payments you will need to make on the loan after 5 years.

Important: If you tight on affordability, try different lenders – the maximum amount each lender will offer you can vary considerably.

We specialise in helping our clients arrange their Help to Buy mortgages and have an in-depth knowledge of how the process works. Calls us on 01424 440410.

Step 3: Reserve your Help to Buy home

Once you know your finances are in order you can call up the local builder and reserve your home/plot. You will normally have to pay a reservation fee (£500 max.) and will need to complete a Help to Buy ‘Property Information Form’. This form gets sent to the local Help to Buy agent and outlines, not only the property details, but also your details and each application gets assessed for affordability before ‘Authority to Proceed’ is granted.

If agreed, authority to proceed will follow 4 days after receipt of the application being submitted by the builder.

Important: The local Help to Buy agent can decline your application, so it’s best to seek the help of an experienced mortgage consultant to ensure everything goes through smoothly.

Step 4: Get your mortgage sorted

Once you have Authority to Proceed, you can instruct a solicitor (we can recommend one) and get your mortgage application under way. Because Help to Buy house purchase are normally ‘off plan’ (i.e. not built yet), it can often take 3-6 months before you are able to move in.

Your Help to Buy mortgage offer will take 2-4 weeks to be arranged.

Step 5: Exchange, complete and move in!

Your solicitor checks the mortgage offer, property price and available funds are consistent with the Authority to Proceed and request permission to exchange contracts from the local Help to Buy agent.

Your local Help to Buy agent issues approval to your solicitor and contracts are exchanged. You arrange a fixed date for completion – often 7 days after exchange.

Move in to your new home.