Home buyers who take advantage of the government’s Help to Buy mortgage scheme when it is extended beyond newbuild homes will have to sign a declaration that they do not own any other properties.
Help to Buy is a scheme which allows borrowers with a five per cent deposit to buy a property with a mortgage for just 75 per cent of the property value. A government loan makes up the difference.
The scheme has boosted the number of mortgage applications from first time buyers and supported recovery in house prices.
Help to Buy is intended to help people get on the property ladder but the government fears it could be abused by existing homeowners to gain finance once extended beyond newbuild homes.
As a result, the Treasury has reportedly said applicants for Help to Buy mortgages will have to sign a declaration to the lender that they do not own another property.
Critics have questioned the need to extend the scheme beyond newbuild homes and whether anyone will attempt to abuse the system.
For more information about the Help to Buy scheme or any property-related matter call the CQS accredited property team at PM Law in Sheffield on 0114 2965444.