Did you know that you can buy a new property with only 5% deposit?
- 1. Help to Buy (Scotland) affordable New Build Scheme
The Help to Buy (Scotland) affordable New Build Scheme is designed by the Scottish Government to help people buy property with a minimal deposit. The scheme is perfect for first time buyers hoping to buy their first home but also open to those selling up and looking to purchase new property.
You will need only a 5% deposit to buy a new home.
The Scottish Government may lend you up to 15% of the value of the property, which means you only need to get an 80% mortgage.
Help to Buy (Scotland) offers an interest free loan. The equity loan can be repaid at any time and is based on the value of the property at the time of repayment.
You will own the property outright.
The scheme is only available on new build homes from participating home builders.
Help to Buy is capped at £230,000 in 2016 and will reduce each financial year.
Timescale Maximum property value
1st March 2016 – 31st March 2017 £230,000
1st April 2017 – 31st March 2018 £200,000
1st April 2018 – 31st March 2019 £175,000
The home must be your only residence, and you must not own or part-own any other residential property.
The scheme is not available to a single person who requires a mortgage of more than 4.5 times their income or couples that require a mortgage of more than 3.5 times their joint income.
The Help to Buy (Scotland) scheme loans are subject to the Scottish Government terms, conditions and their qualifying criteria.
- 2. Help to Buy: Mortgage Guarantee Scheme
If you can afford to repay a mortgage to purchase a newly built or an existing property but don’t have a large deposit, this scheme will benefit you by giving you access to low deposit mortgages. The scheme will be open until 31 December 2016.
Mortgage guarantee scheme works in exactly the same way as any other mortgage except that under the scheme the Government offers a guarantee to the lenders.
Because of this support, lenders taking part are able to offer home buyers mortgages up to 95% loan to value.
You will still be fully responsible for your mortgage repayments. So if you have a 5% deposit, you will need to take out and pay back a 95% mortgage.
If you need any Mortgage or Protection advice then we are here to help you, please call 01224 516 888 or click here. We are based in the West End of Aberdeen and are happy to travel to your home or place of work. We can also set-up an appointment at our Queen’s Gardens office or meeting room in the city centre. Weekend appointments also available!