What is the help of the UK to buy a new plan?

UK purchase assistance program can help you buy up to £ 600,000 worth of property – whether it is a new property or a second-hand property – only 5% of the property price.

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Two forms: part of the "equity loan" section that enables you to extract interest-free loans from the government; the other is the "guaranteed part" that enables the government to act as part of your debt guarantor.

The "equity loan" section of the program was introduced in April 2013. This part of the plan may help you to purchase a newly created property. You will need to withdraw 5% of the deposit you want to buy for the value of the property, but if you need, you can borrow another 20% interest in the first five years. You have to repay the loan provided by the government to sell the proceeds of your property. You can repay your loan in advance, but only at the same time you pay off your mortgage. Five years later, your loan will attract 1.75% of the cost, which will be increased by the retail price index (RPI) plus 1% to increase

the "guarantee part" of the plan was launched in October 2013. This part of the program can help you to buy a new or existing property, deposits between 5% and 20%. The government will provide up to 15% of the loan guarantee for the lender of your choice, allowing the lender to provide you with a mortgage, regardless of your size

Is the program in the UK?

The program will be able to help you in the UK whether you have a house or an existing homeowner.

Can the program help me get a mortgage?

If you want to buy a property, you can take advantage of this plan. Only standing on your way to get the mortgage thing is the lack of large deposits, the plan should be able to help you. However, if your credit record is not good, unemployed or recently chosen to become a self-employed person, then the program may not be able to help you get a mortgage.

How much interest do I have to pay?

According to the help purchase plan, the lender is free to set its own mortgage rate. Mortgages provided through the program should theoretically be lower than 95% of the mortgage on the market. This is because the government will serve as the guarantor of some of your debts. This shows that it is important to realize that in order to participate in the program, the lender must pay the government, so this may not always be the case.

What happens if I fall on my mortgage repayment?

Unfortunately, if you are owed to your mortgage repayment, "buy help" will not help you. The guarantee is only for the lender, which means that if the lender can not recover your debt to sell the property, the government will help make up for the shortage.