Help to Buy 2 is a scheme designed to encourage lenders to offer more mortgages to those who have sufficient incomes to repay a mortgage, but are struggling to get a deposit together. It's available on any type of property (not just new builds) for those with a 5% deposit and you'll own it outright.
This 'mortgage guarantee' scheme provides an insurance policy for mortgage lenders, therefore, if you have a 5% deposit and the property is worth less than £400,000 in Scotland, £600,000 in England/Wales, the government will insure the next 15% for the lender in case of problems.
As lenders are taking the same risk as if you had a 20% deposit, they can offer more mortgages at 95% LTV than they would've done.
Graham Taylor is an Associate in our Residential Property team. If you would like to speak to member of our team regarding the scheme mentioned above please call us on 01382 229111 or email Graham at gtaylor@thorntons-law.co.uk
