A mortgage supported by the Help to Buy mortgage guarantee scheme works in exactly the same way as any other mortgage except that under the scheme the Government offers lenders the option to purchase a guarantee on mortgage loans.
Because of this support, lenders taking part are able to offer home buyers more high loan-to-value mortgages (80-95%).
You will still be fully responsible for your mortgage repayments. So if you have a 5% deposit, you will need to take out and pay back a 95% mortgage.
A mortgage under the Help to Buy: mortgage guarantee scheme works like any other mortgage. Your lender will check that you can afford the mortgage and that you do not have a history of payment difficulties.
To qualify for a mortgage supported by Help to Buy: mortgage guarantee:
The Help to Buy: mortgage guarantee scheme will run until 31 December 2016.
– See more at: https://www.helptobuy.gov.uk/mortgage-guarantee/eligibility/#sthash.OIQTyKlJ.dpuf
The Help to Buy: mortgage guarantee scheme is offered by mortgage lenders across the UK. You can apply for a mortgage through participating high street lenders or through a mortgage broker.
Your next step is to find your home and talk to your lender. Look out for the Help to Buy logo.
– See more at: https://www.helptobuy.gov.uk/mortgage-guarantee/how-to-apply-mortgage-guarantee/#sthash.sXkumFeB.dpuf