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Help to Buy

There are two Government Help to Buy schemes - Help to Buy: mortgage guarantee and Help to Buy: equity loan.

Look at the sections below to find out more information about the two schemes.

Help to Buy: mortgage guarantee

We’re delighted to have joined the second phase of the Government's Help to Buy scheme.

Under the scheme, if you’re buying your first home or moving home, we’ll have a range of mortgages up to 95% Loan to Value (LTV) for you to choose from. These are aimed at helping you if you have a 5% - 10% deposit. 

Our range of mortgages come with no booking fee, plus we’ll pay for a standard valuation and give you £250 cashback when you complete.  You only need to repay the cashback if you repay your mortgage within the first two years.

 
Do I qualify under the scheme?

To apply for a mortgage under the Help to Buy: mortgage guarantee scheme with us you need:

  • To be at least 18 years of age and a UK resident
  • To want the mortgage for a property in the UK (but not in the Isle of Man) and for this to be your only property
  • To be intending to live in the property
  • The property value to be no more than £600,000 
  • To have at least a 5% deposit (and not more than 10%) that doesn’t involve any other publicly assisted funding like Local Authority funded deposits, or schemes such as Right to Buy, or Shared Ownership. 
  • To take a mortgage on a Repayment (Capital and Interest) basis.

 

Finally, you must have never had a home repossessed or been declared bankrupt or subject to an IVA.

How do I access the scheme?

To access our exciting new range simply use our mortgage calculator, which will show you what mortgages are available to you and what your monthly payments could be.

Then when you’re ready, you can contact us to find out more and apply either in branch or over the telephone.

 

Frequently Asked Questions

Does the guarantee protect me?

Does the scheme guarantee my payments?

Can I purchase any property under the scheme?

What is the maximum amount I can borrow?

Will you share my information with the Government?

Where can I find out more?

 

Does the guarantee protect me?

The guarantee only protects the lender, it does not protect the borrower. This mortgage works in exactly the same way as a standard mortgage.

Does the scheme guarantee my payments?

No. The scheme does not change or reduce your personal responsibility. You are responsible for paying your mortgage under this scheme in exactly the same way as any other mortgage.

Can I purchase any property under the scheme?

Our current lending policy means that you can’t buy a new build property or flat under the scheme. The scheme is only available for pre-owned houses.

What is the maximum amount I can borrow?

The maximum amount that you can borrow under the scheme is £570,000.

Will you share my information with the Government?

Yes. Information about you and your home, your mortgage application and how you manage your mortgage may be shared with and used by the scheme administrator, acting on behalf of the Government. However, this is subject to strict controls and will only be used for specific purposes. For further details about how your personal information will be used by or on behalf of the Government, please visit www.helptobuy.org.uk.     

Where can I find out more?

Further information on the Help to Buy: mortgage guarantee scheme can be found in Santander's Help to Buy: mortgage guarantee scheme customer factsheet and on  www.helptobuy.org.uk.

 

Help to Buy: equity loan

The Help to Buy: equity loan scheme is a Government backed programme designed to help people who have smaller deposits to buy a newly built home in England.

With a Help to Buy: equity loan;

  • You own 100% of the property
  • It is not restricted to key workers
  • It is available to both First Time Buyers and Home Movers
  • It is available on both houses and flats/apartments

 

How does the scheme work?

  • You will need a deposit of at least 5% of the purchase price.
  • You then buy your new home with up to 75% of the cost met by a Help to Buy Repayment (Capital and Interest) mortgage provided by Santander.
  • The rest is paid by the Government through an equity loan which is interest free for the first five years of the scheme, after which you will be charged interest. The equity loan can be repaid in full at any time or you can make a partial repayment, but it must be a minimum of 10% of your home's market value at the time the payment is made.
  • Santander Help to Buy: equity loan mortgages are available from Santander for Intermediaries through your Financial Adviser.
  • The mortgage range covers both fixed and tracker rate mortgages.
  • Santander Help to Buy: equity loan mortgages are NOT available through Santander branches or over the telephone.

 

Do I qualify under the scheme?

 To apply for a mortgage under the Help to Buy: equity loan scheme with us you need.

  • To be at least 18 years of age and a UK resident
  • To want the mortgage for a new build property in England and for this to be your only property
  • The property you want to buy must be included in the scheme.  If in doubt, speak to the builder or developer about whether they take part in the scheme
  • To be intending to live in the property
  • The property value to be no more than £600,000 
  • To have at least a 5% deposit of the purchase price
  • To take a mortgage on a Repayment (Capital and Interest) basis over 25 years or less.

Finally, you must have never had a home repossessed or been declared bankrupt or subject to an IVA.

 

How do I access the scheme?

  • Step 1 Find a potential new home from a developer working within the Help to Buy: equity loan scheme. Properties can be found from your local Help to Buy agent's website, or if you are visiting a new housing development, ask the builder if they are participating in the scheme.
     
  • Step 2 Then speak to a Financial Adviser to obtain a mortgage 'Decision in Principle' before paying any reservation fees. A 'Decision in Principle' will provide you with an approximate idea of the size of mortgage you would qualify for.
     
  • Step 3 Make your reservation with the builder.  Complete the 'Property Information Form' which the developer will send to your local Help to Buy agent. At this point you may need to pay a reservation fee to the builder.
     
  • Step 4 The Help to Buy agent will assess your equity loan application and if successful, will issue an 'Authority to Proceed' (ATP) pack, which you will need when you apply for your mortgage. This will be emailed to you and you will also receive a copy in the post.
     
  • Step 5 Once you have received your ATP you will then be able to go back to your Financial Adviser and complete your mortgage application.
     
  • Step 6  If your mortgage application is successful your Financial Adviser will inform you of the next steps and timescales involved.
     
  • Step 7  On completion of your property your solicitor will register a second charge on your home to cover the equity loan.

 


Further information on the Help to Buy: equity loan scheme can be found in Santander's Help to Buy: equity loan scheme' customer factsheet and in the Buyer's Guide on the Help to Buy website.

Frequently Asked Questions

Can I put more than a 5% deposit down?

How much can I borrow?

Can I do part exchange as part of the scheme?

When will I have to pay back my Equity loan? 

Can I buy a property using Help to Buy and rent it out? 

Where can I find out more information about the Help to Buy: equity loan scheme?

Can I put more than a 5% deposit down?

Yes, but you should discuss this with both the Help to Buy agent and your Financial Adviser to understand all your available options so you can decide which mortgage is best for you.

How much can I borrow?

The amount you can borrow will depend on your individual circumstances and on Santander's current lending criteria at the time of your application. You will need to check with your Financial Adviser to make sure you can afford the mortgage.

Can I do part exchange as part of the scheme?

No. Part Exchange is not available as part of the Help to Buy: equity loan scheme.

When will I have to pay back my equity loan?

The equity loan can be repaid at any time within 25 years (or the terms of the mortgage), or on sale of the property. It is important that you think about, and discuss with your Financial Adviser, about saving to make sure you can repay the loan in the future. You should be clear about how you plan to repay the loan and have a plan in place to enable you to do this.

Can I buy a property using Help to Buy: equity loan scheme and rent it out?

No. Help to Buy: equity loan will only be available on properties which are occupied by the individual or individuals taking out the mortgage. If you already own another property that you do not wish to sell, then you would not be eligible for the scheme.

Where can I find out more information about the Help to Buy: equity loan scheme?

Speak to your local Help to Buy agent and participating developers to find out more about the Help to Buy: equity loan scheme. Details of your local Help to Buy agent can be found on the Help to Buy website together with further information about the scheme.

You should also speak to a Financial Adviser where you can discuss your financial circumstances and decide whether a mortgage under the scheme is right for you.

We have produced a Help to Buy: equity loan scheme customer factsheet that provides further information.

 

Glossary

 

Financial Adviser

Help to Buy agents

Authority to Proceed (ATP)

Second charge

Financial Adviser is an independent individual or company who would provide impartial advice on your mortgage options.

Help to Buy agents are registered providers appointed by the Government's Homes and Communities Agency. Your local Help to Buy agent is there to guide you through the options available and explain the eligibility and affordability criteria of the Help to Buy equity loan scheme. Detail of your local Help to Buy agent can be found on the Help to Buy website.

Authority to Proceed (ATP) is the approval you would receive from the Help to Buy agent which confirms your equity loan on the property you have applied for.

Second charge is a secured loan against your property that comes second in line to a first charge (the first charge is your mortgage). When the property is sold, the first charge (your mortgage), is cleared in full before the second charge (the equity loan), receives any money from the sale. You would receive any money that was left after both of the loans had been repaid.

All applications are subject to status and our lending criteria. This means that the amount we will lend you will depend on your individual circumstances, the type of property and the amount you borrow. For example, we may require a higher deposit if you are buying a flat or a new build property.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

 

Useful Information