A vital part of purchasing your own home is arranging the right type of mortgage. Getting help and independent advice is the key part of this process and Help to Buy South West is here to help you make these important decisions.
Independent Financial Advice
Our panel of Independent Mortgage Advisors have been selected because of their high levels of service as shown from our customer feedback; they will help you make the choices that will give you a great start to life as a home owner.
Because mortgage advice is so important in buying your home, we expect all applicants to seek advice before arranging a mortgage. If you currently have a financial advisor then you can use them however Help to Buy South West has an approved panel of IFA's that can be found here
If you choose your own advisor then we may need to carry out a further check of your details to ensure you have been given the best possible advice.
Types of Mortgages
There are many different types of mortgage, with varying terms and conditions. You will be required to obtain your mortgage from a high street lender, regulated by the FCA. You will be advised of which mortgages are acceptable for the scheme you are applying for.
When choosing the right mortgage for you, make sure you are not over-stretching yourself and can afford the monthly payments.
Remember, interest rates can go up as well as down, so make sure you've got enough flexibility to cover potential financial outgoings.
Local Lend a Hand scheme
In January 2013 North Devon Council launched a scheme to help first-time buyers. The council has joined forces with Lloyds TSB to help local people buy their first home with a deposit of just 5% at reasonable interest rates. £1m has been put aside to insure the Local Lend a Hand scheme, which is available in local branches of Lloyds TSB.
Subject to meeting the bank's usual lending criteria on a repayment mortgage, borrowers are able to select any existing property in the area covered by North Devon Council up to a maximum loan of £150,000. They must also:
- be a first time buyer
- live in the property as their main residence
- provide at least 5% deposit
Anyone interested in the local scheme should visit their local branch of Lloyds TSB.
More information is available at https://www.lloydsbank.com/mortgages/offers.asp and there are information leaflets on display in all of our council offices.
Other important things to note:
Generally, the term of your mortgage should be for no more than 35 years. Self-certified mortgages are not acceptable. Your mortgage should be on a repayment basis. We cannot accept mortgage offers that offer further borrowing without consent. You can only borrow money on a mortgage up to the value of the share you are buying in the property
Financial Conduct Authority
The Financial Conduct Authority (FCA) hold a register of financial/mortgage advisors who are put on their register once they have given them permission to carry out a particular activity. After being authorised the FSA monitor that they follow set standards, known as being regulated. You can access the register by clicking here.