Help to Buy
5% deposit mortgages
All you need to know about the Help to Buy: Mortgage Guarantee scheme
Available for over 18s
not keep up repayments on your mortgage
The following eligibility criteria applies for Help to Buy mortgage applications:
✔ The property must not be a new build home. A new build is defined as any property built, first occupied in it’s current state or significantly modernised, refurbished or altered within the last 2 years
✔ You will be planning to live in your house and not rent it out i.e. it will be your main residence
✔ You cannot own any other property, in full or in part
✔ The property you want to buy must be in the UK
✔ You and any joint applicant must be over 18
✔ The purchase price or valuation must be no more than £600,000
✔ You have a deposit of at least 5% but less than 10%
✔ The mortgage must be taken out on a capital and interest repayment basis (i.e. it can’t be interest only)
✔ The mortgage must be to buy your only property so you cannot use it to buy a second or further home
✔ The mortgage cannot be for a shared equity or shared ownership purchase You and any joint applicant are able to meet our affordability criteria
✔ The scheme is available to existing homeowners and first time buyers
✔ You and any joint applicant are able to meet our underwriting criteria such as an acceptable valuation and being able to provide proof of income etc
You cannot apply for a Help to Buy mortgage if you do not meet the above criteria. However, we may still have a first time buyer mortgage available to suit your needs. Visit our First Time Buyer page for more information.
An online Agreement in Principle puts you in an ideal position to make offers on properties with confidence.
✔ Get an indication of how much we could lend to you in just 5 minutes
✔ A personalised view of the mortgage deals available to apply for
✔ A soft credit check, so no affect on your credit rating
You can apply for a Help to Buy mortgage by phone or in branch. You cannot apply online.
Before applying, it may be useful to get an online Agreement in Principle. This gives an indication of how much we can lend to you and the mortgage deals available.
Once your ready, our qualified advisers will assess your needs and recommend a Royal Bank mortgage we believe is suitable for you.
Check out this handy video guide to discover how the scheme works. You can also see further information with our helpful infographic.
What is Help to Buy: mortgage guarantee?
Many credit-worthy people are finding it difficult to get a mortgage today because of the large deposits needed following the financial crisis. To help address this, the Government has created the Help to Buy: mortgage guarantee scheme to increase the number of low-deposit mortgages available for credit-worthy households.
How does it work?
Under the scheme, the Government offers mortgage lenders the option to purchase a guarantee on mortgages for a new or existing property, where a borrower has a deposit of between 5% and 20%. Because of this support, Royal Bank of Scotland are able to offer more mortgages to borrowers with smaller deposits.
How does it benefit me?
If you can afford to repay a mortgage but don’t have a large deposit, this scheme will benefit you by giving you access to low deposit mortgages. This means you won’t have to wait and save up for a large deposit to buy or move home.
Does the scheme guarantee my payments?
The scheme does not guarantee your payments. You are responsible for paying your mortgage under this scheme in exactly the same way as any other mortgage.
Am I eligible for the scheme?
Any borrower seeking to benefit from the Help to Buy: mortgage guarantee scheme will need to meet Royal Bank affordability and other criteria in the normal way. But there are some further eligibility requirements which you will need to meet in order to get a Help to Buy supported mortgage. In particular: it must be a residential mortgage, so you will be planning to live in your house and not rent it out; the property you want to buy must be in the UK and the purchase value must be £600,000 or less; the mortgage must be taken out on a repayment basis, rather than interest-only; the mortgage must be to buy your only property, so you cannot use it to buy a second or further home; and the mortgage cannot be for a shared equity or shared ownership purchase.
Where can I find out more?
You can also visit www.helptobuy.org.uk to find out more about the scheme.