Applications closed at the end of last month for the Government’s Help to Buy Scheme
Despite calls from many quarters for the scheme to be extended, it looks unlikely that the initiative will be brought back any time soon. However, while that avenue may have been closed off, there is still support available for those looking to buy a new home.

Mortgage Guarantee Scheme
Those looking to buy properties costing up to £600,000 and who have a 5% deposit can apply for the Mortgage Guarantee Scheme to secure a 95% loan to value (LTV) mortgage. The scheme was announced last year and aims to encourage lenders to start offering 95% mortgages, most of which were withdrawn during the pandemic.

Under the terms of the scheme, the government guarantees the portion of the mortgage over 80% (so, with a 95% mortgage, the remaining 15%). Effectively, it means the government will partially compensate the lender if a homeowner fails to pay their mortgage. It is available from participating lenders to all buyers deemed to be credit-worthy.

Part Exchange
How many times have you heard of people missing out on their dream home because the sale of their existing property has fallen through? It unfortunately happens all too often, but this scheme is designed to minimise that risk.

If a buyer of one of our new homes wants to offer their existing property in part exchange, we will undertake a comprehensive valuation appraisal to ascertain full market value. To qualify, the price of your new home must be 30 per cent more than the value of the property you wish to part exchange and our trusted partners will ensure valuations are fair and realistic.

Once a price has been agreed, we will then manage the whole selling process.

That means we will organise surveys, liaise with estate agents, buyers and solicitors. All you have to do is concentrate on planning your future in your brand new home.

Deposit Unlock
This scheme was developed by the Home Builders Federation in recognition that mortgage lenders are often stricter on the amount they are willing to lend buyers of new-build properties. Often they require deposits of up to 25 per cent which is unaffordable for many potential buyers.

Deposit Unlock gets round that with the house builder paying to insure the mortgage , which means you just need a 5% deposit. The maximum loan you can take out to buy a property through this scheme is currently £750,000, but this amount depends both on your lender and your financial circumstances.

Author:  Sarah Freeman, V&A Homes