Phase 2 of Help to Buy Scheme Officially Launched

“Help to Buy Scheme”, the Government initiative designed to help existing home owners and first time buyers purchase a home with a small deposit, launched this week.

Several major lenders have already signed up to the scheme, where the government will guarantee up to 15% of the loan, with more lenders expressing an interest in joining the scheme in the near future.

RBS, NatWest and Halifax started taking applications this week, with HSBC and Virgin Money joining the scheme in due course.

The first phase of the Help to Buy scheme commenced in April of this year, when buyers of newly built homes were eligible for a 20% equity loan from the government on top of their 5% deposit.

Under the second phase, buyers across the UK only need to provide a 5% deposit, with the government offering a guarantee of 15% of the loan to the lender (for a fee) to encourage the bank or building society to offer the loan.

The Residential Conveyancing Team at Mincoffs have been fully trained on the Help to Buy Scheme and are ready and waiting to offer potential buyers advice on the legal implications should they purchase a property as part of the scheme.

For more information please contact Mincoffs Residential Conveyancing Team on 0191 281 6151.