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Help to Buy Mortgage Guarantee Scheme Rules Revised - Again!

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The Help to Buy mortgage guarantee scheme rules have been revised with effect from 8 April 2015.

The Help to Buy mortgage guarantee scheme allows lenders to take advantage of guarantees offered by the government in respect of certain mortgages. The scheme rules include, among other matters, the criteria for mortgages that are eligible for the guarantee scheme.

Schedule 3 to the scheme rules sets out who will be a credit-impaired borrower for the purposes of the scheme rules. A mortgage to a credit-impaired borrower is not eligible for the guarantee scheme. Paragraph (b) of Schedule 3 has been revised so that a credit-impaired borrower will include someone who has been the subject of one or more county court judgments for a debt or debts with a total value greater than £500. This excludes any debt satisfied one month or less from the date of the judgment or three years or more before the date of completion of the loan.

This change does not apply to any loans where the mortgage offer was made before 8 April 2015.

Source: HM Treasury: Help to Buy: mortgage guarantee scheme rules (March 2015)