Compare First Time Buyer Help to Buy Mortgages

Help to Buy mortgages are designed to help people get on to the property ladder to buy either a new build or existing property._ Compare First Time Buyer Help to Buy mortgage lenders, rates and arrangement fees in the table below.

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Last updated on 09 November 2020.

Help to Buy Mortgages FAQ

What is a Help to Buy mortgage?

A Help to Buy mortgage allows borrowers to buy a property with just a 5% deposit. There are two parts to the Help to Buy Scheme. The Help to Buy equity loan sees borrowers raise 5% deposit themselves and borrow a further 20% from the Government in an equity loan (up to 40% in London), allowing them to access mortgages at 75% loan to value (LTV) (up to 55% LTV in London). The second part is the Help to Buy mortgage guarantee. Borrowers still put down just 5% deposit however this time the government offers a guarantee to the lender for up to 15% of the mortgage. The aim of the scheme is to give more lenders the confidence to lend at higher LTVs.

Am I eligible for a Help to Buy mortgage?

Both parts of the Help to Buy scheme are available to first time buyers and existing homeowners however the equity loan element can only be used on new build houses. For both parts of the scheme the maximum property value is £600,000. The scheme cannot be used for second homes or buy to let properties. You'll also be subject to your lender's own eligibility criteria.

How can Help to Buy help me?

Help to Buy is designed to help borrowers who want to get on or move up the housing ladder but only have a small deposit.

Are there any downsides to Help to Buy?

Not all lenders offer Help to Buy mortgages and as a result your choice of mortgage will be limited. If you're using the Help to Buy equity loan (part one of the scheme) you can only buy a new build home.

Do all lenders offer Help to Buy mortgages?

No, lenders must opt in to the scheme and not all lenders have done so.

Are rates on Help to Buy mortgages higher?

That depends which part of the scheme you use. The equity loan scheme enables borrowers to access mortgages at 75% loan to value (LTV). Mortgages with a lower LTV feature more competitive rates.

The mortgage guarantee element of the scheme encourages lenders to lend at high LTVs. Traditionally mortgages at higher LTVs have higher rates.

Can I sell my house if I have a Help to Buy mortgage?

Yes you can sell your home however if you have an equity loan you will need to repay it upon the sale of your property. As this is an equity loan the government will take 20% of the property's current value.

What is the Help to Buy ISA?

The Help to Buy ISA is a savings account designed to encourage first time buyers to save for a deposit. The Government will boost savings by 25% up to a total value of £12,000 (taking your savings to £15,000 with the government's contribution).

How can I compare Help to Buy mortgages?

NerdWallet's comparison tables can help you to sort Help to Buy mortgages by rate, fees and overall cost helping you to find the best option for your circumstances.

NerdWallet has selected Koodoo to provide you with this information-only online comparison service on a non-advised basis. NerdWallet will receive a share of the commission that Koodoo earns from the lender or from our partnered broker, Fluent Mortgages.

Koodoo is the trading name of Mortgage Power Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 845978), and is a registered company in England and Wales (company registration number 10978680), with a registered address at Scale Space, 58 Wood Lane, London, W12 7RZ

Fluent Mortgages Ltd is authorised and regulated by the Financial Conduct Authority (FRN 458914), and is a registered company in England and Wales (company registration number 10978680), with a registered address at 102 Rivington House, Chorley, New Road, Horwich, Bolton, BL6 5UE