As well as providing mortgage advice throughout Banbury, Oxfordshire, Higham’s mortgage and protection are also experienced in providing sound advice across many different housing schemes including Help to Buy and Shared Ownership IN BANBURY.
Help to Buy
Help to Buy enables you to buy a new build property with a 5% deposit and borrow up to 20% of the value of the home in the form of an interest free* equity loan from the government. You will then need to raise a 75% mortgage to cover the remaining cost of the home. With plenty of new build in Banbury, could this be an option for you?
Shared Ownership allows you to buy a share in a property between 25% – 75% of the purchase price, you then pay a low cost rent on the remaining share. It can often be an affordable alternative to renting or buying on the open market. Unlike purchasing on the open market, you don’t need to raise a deposit based on 100% value of the property, just for the share that you are purchasing. Shared Ownership in Banbury is now widely available across many of the new build sites.
These two schemes are very different and will benefit many people, in various situations. What stands out is that they can both potentially allow the purchase of a property with a smaller deposit than usually needed on the open market.
*The equity loan is interest free for the first five years, but in the 6th year of ownership, a fee of 1.75% of the equity loan based on the market value at the time you purchased is payable monthly, rising annually by the increase (if any) in the Retail Price Index (RPI) plus 1%. This is applicable if you have not paid back your equity loan by the end of year 5. An illustration will be given to you at the time of purchase. You must pay a monthly management fee of £1 per month from the start of the loan until it is repaid.