Q and A: How can I get a loan with Help to Buy?

Q Am I eligible for a loan with this guarantee?

A The loans are available to buy a house for less than £600,000 that you will live in. It only applies to capital repayment loans, and is only for buyers with a deposit of between five and 20 per cent of the price.

Q How do I get one?

A RBS and NatWest and Halifax offer loans under the scheme. HSBC, Virgin Money and Aldermore will do soon. You will face income, affordability and credit checks.

Q Who pays the fees?

A The bank pays the fee for the guarantee to the Treasury up front. This is expected to be mainly passed on to borrowers in terms of higher interest rates.

Q What are the interest rates like on these loans?

A Halifax is charging 5.19 per cent on a two year fixed, five per cent deposit mortgage, with a fee of £995. RBS will charge 4.99 per cent for a two-year fix, with no product fee. The rates are relatively high compared with non-Help to Buy loans, in part because of the fee paid to the Treasury to cover the loan guarantee.