If you want to buy a home and you only have a small deposit – say 5% of the property’s value – things have been pretty tough since the financial crisis a few years ago.
You’ve either had to pay a much higher interest rate than the market average, or it’s been impossible for you to get a mortgage at all.
The Government has launched the Help-to-buy programme to try and solve this problem.
As a result, it should be easier for people with smaller deposits to get a mortgage. At the same time, builders should be able to sell new properties more quickly while the Government no doubt hopes to win more support from voters.
How it works
Help-to-buy comprises two main schemes:
- Help-to-buy equity loans (also known as Help-to-buy 1)
- Help-to-buy mortgage guarantee (also known as Help-to-buy 2)
Help to Buy should make it easier for people with smaller deposits to get a mortgage