When you have a less than perfect credit profile and a 5% deposit and are looking to purchase your first property, you may find when looking at lenders who will help you, they are in very short supply.
What many clients are over looking is the advantage that using the Help To Buy option will give you. Apart from the obvious difference that another 20% in your deposit pot will give you in terms of the properties that you can consider to purchase. The underwriting of your mortgage application is based on a 75% loan to value application. Not only do you then have access to far more competitive terms, as there is a perceived lower risk to the lender, but the lenders view of your credit profile will again reflect the lower risk profile.
This is a brilliant way of getting onto the housing ladder when some clients may have felt that they had very little chance of success. However what all clients have to keep their mind focused on is that the loan ( 20% of the deposit ) is repayable after five years. You will then have the option of paying interest on the loan to the government, or re-mortgaging to raise the funds to repay the loan.
If you would like more information on the plan please either go to our website www.amortgage4you.co.uk or click on the link below.