The UK Government has recently launched a Housing scheme to allow people with the inability to save for 20% deposit to purchase a house. The Scheme requires a 5% deposit.
Help-To-Buy has been taken up by most of the UK’s largest mortgage lenders:
So, for example, a possible scenario is the buyer taking out an 85% mortgage, with the Government guaranteeing 10% of its value should you not be able to pay the mortgage and default. (What this means in reality is that you are still liable for the mortgage, but the Government will guarantee a proportion of the mortgage to the lender.)
Also, the Government is allowing lenders to set their own interest rates, so it could be a potentially more expensive option depending on the lender. On the flip side, if you have a small deposit it can be your only option to get onto the property ladder.
This is available for home-buyers wanting to purchase New Property. Structured Acquisitions have a number of new build properties available and as such would qualify for this Scheme.
Let’s say you wanted to buy a home for £200,000. This would be broken down into:
The benefit of this Scheme is that lenders are more likely to offer better Interest rates (having been given a larger deposit)
To find out more about any of the Schemes and how they affect your Structured Acquisitions property investment, please contact us.