The Help To Buy Scheme is a government backed scheme which allows first time buyers to purchase a property in England and Wales with as little as a 5% deposit.
The idea of the scheme is that the government will provide a guarantee for a further 10% of the deposit amount. This has been designed to provide confidence in the mortgage market and allow first time buyers the ability to take their ‘first step’ on the property ladder.
As a result there are some fantastic rates and incentives with a variety of Lenders and although not all lenders have signed up to the scheme the ones which have, have inspired confidence in the mortgage market and have inspired some to offer competitive 5% deposit products. The main point of Help to Buy is that it makes it possible to buy a new-build or an existing home priced up to £600,000 with as little as a 5% deposit.