Help to Buy (Equity Loan)

Help to Buy is a scheme by which the Government will loan you up to 20% of the value of your new build home (40% in London)

You can access the Help to Buy scheme provided you have a minimum deposit of 5% and wish to buy a new build home.  You will need to meet appropriate tests to ensure that you are able to pay back the mortgage as well as passing the mortgage lenders credit and affordability checks.

Properties under this scheme can be up to £600,000 in value and it is open to both home movers and first time buyers, provided it is for the applicant’s occupation only.  It is only available to individuals, not Companies, and is applicable only through participating developers and HomeBuy agents.

In essence, the Government provides buyers with an equity loan of up to 20% of the value of a new build property (40% in London).  The loan is interest free for the first five years.  From year six a fee of 1.75% is payable on the equity loan, which rises annually by R.P.I. inflation plus 1%.

The loan can be repaid at any time within 25 years (or the term of the mortgage), or on sale of the property.

One of the key advantages to this scheme is that even though you may only have a 5% deposit, we can access mortgages with very low interest rates, which would normally only be available to those with much bigger deposits.

Please see the short guide in the “Library” section of this site for a quick summary.

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

There may be a fee for Mortgage advice. The precise amount will depend upon your circumstances and we will discuss your payment options with you and confirm the actual amount payable before we begin to provide our services.