Help to Buy was first introduced in 2013 to offer a 20% Government loan (or 40% in London) to first-time buyers of qualifying new-build properties.
The scheme lets customers with a low deposits (typically 5% or over) get their foot on the housing ladder.
How it works
- You need to provide a 5% deposit.
- The government will lend you up to 20% of the property value (up to 40% if buying within Greater London).
- You then need to secure up to a 75% mortgage.
- The loan is interest free for the first 5 years. After that you'll be charged the full interest rate.
Who is it for?
- It's aimed at first time buyers and existing homeowners who are eligible.
- It is only available on one property, so when it applying it must be for you only property.
- There are Terms and conditions that apply to all Help to Buy schemes so make sure you check the full eligibility criteria. .
There are two types of scheme available, one that is purely for newly built homes (the Equity Loan Scheme) and one for Existing Homes (The Mortgage Guarantee Scheme).
Detailed information can be found on the Government website www.helptobuy.gov.uk
