Image of House Keys, Help to Buy 2 Mortgage Guarantee

Help to Buy 2 Mortgage Guarantee

The Help to Buy Mortgage Guarantee, also known as Help to Buy 2 (HtB2), is an evolution of the Help to Buy Equity Loan (HtB).

Conversely, this version focuses on the lender rather than the buyer; by making mortgages less risky for the lender, they can offer mortgages requiring lower initial deposits to the buyer. Furthermore, this scheme allows purchases on old homes rather than just new builds.

The Mortgage Guarantee

In this scheme the government offer the lenders up to 15% of the property value if the mortgage falls through due to foreclosure or repossession, if the buyer cannot keep up with the payments. In return, the lenders are to offer out mortgages of 95% of the property value, meaning the buyer will only have to save up a deposit of 5%.

What is the difference between Help to Buy and Help to Buy 2?

The names are similar, and indeed there are similarities between the two schemes, but the two should not be confused. HtB is focussed at the buyer and offers them an equity loan of up to 20% requiring a 5% deposit and a mortgage of 75%.

HtB2 offers a guarantee of 15% of the property value to the lenders in the event the buyer cannot keep up with payments and the property gets repossessed, and in return the buyer has to lay down only a 5% deposit.

HtB2 also can be used to purchase old properties which HtB could not. Both schemes are still only available on properties valued below ?600,000.

HtB Equity Loan HtB2 Mortgage Guarantee
Buyer Deposit 5% 5%
Government Equity Loan 20% None
Guarantee to lender None 15% of the property value
15% of the property value £600,000 £600,000

Date availability

Initially HtB2 was set to become available in January 2014, but instead has been ushered forward and been made available as of October 2013, three months early. This is only a short term scheme, and at the moment is set to end in January of 2017.

Note: For a free no obligation chat with an independant mortgage specialist about your requirements please complete our mortgage enquiry form below.

Make a Free - No Obligation Mortgage Enquiry

Stop Press: Find the perfect mortgage!
Lending criteria has been relaxed and our specialists can find you great mortgage offers to compare.
Our team do all the work to find you the best offer
We'll help you find the best mortgage for your needs and ensure that everything runs as smoothly as possible.
Deposits required are again falling
The cost of the best deals has dropped recently for those borrowing either 80%, 85% or 90% of their property's value
Independent, searching the whole market
With 1000's of mortgage products available our mortgage brokers will source the mortgage that suits your situation.
Please complete this quick, free enquiry form.



Your Details

Home Buyer guides

Home Buyer News

Speak with an independant mortgage specialist

About Company is part of the SFN Network of websites. Sitefinders Net Ltd is a U.K based company setup in 1995. Our core business is the development of online businesses using the generic domain name concept. We have a growing portfolio of websites in many different industries such as electronics, finance, retail, seasonal and health.

Privacy Policy

Get in Touch