New Help to Buy Scheme
It seems that 2,000 people have already put in offers for houses in the first month of the new Help To Buy scheme set up by the Government. The average price of the properties bid for is £163,000.
It appears that the new Help To Buy scheme is mainly attracting first time buyers. Lenders froze them out of the market when they were asking for deposits of 20% or more.
Over 75% of the applications are from outside London and the South East.
Using the Help To Buy scheme you can get loans needing just a 5% deposit for homes up to a value of £600,000.
First Time Buyers
More than three-quarters of the applicants are first time buyers. The typical applicant is in his or her early thirties.
According to David Cameron “Four weeks in and it’s clear that Help to Buy is already delivering. Seventy-five families every single day have been put on the path to owning their dream home.
“But the best thing about it isn’t the statistics. It’s who is really benefiting. Most Help to Buy applicants are first-time buyers, young and have a roughly average household income.”
It seems that 65% of all mortgage providers have now signed up to the scheme. It will last for three years. After that, it is hoped that lenders will be in a position, with a recovering economy, of being able to give out 95% mortgages by themselves.
How to Apply
We would advise UK Contractors seeking to use the scheme to use a specialist contractor mortgage broker. Because, if you walk into a high street bank they will want three years worth of accounts. Furthermore, they will also base the offer amount on your director’s salary.
The specialist mortgage brokers will get you a mortgage offer based just on your contract and on your daily rate annualised, e.g. Daily Rate x 5 x 48. They can then get you offers of up to 4 times that annualised rate.
To find out more or to apply click on Specialist Contractor Mortgages