Help to Buy
Help to Buy 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.
Who is it for?
- It's aimed at first time buyers
- It is only available on one property, so when it applying it must be for your only property.
- There are Terms and conditions that apply to all Help to Buy schemes so make sure you check the full eligibility criteria. .
Detailed information can be found on the Government website www.helptobuy.gov.uk
Help to Buy equity loan
Help to Buy: Equity Loan (2021-2023)
Help to Buy is a government scheme designed to help first time buyers who have never owned a property before to advance up the property ladder.
Who is eligible?
Help to Buy: Equity Loan (2021-2023) are available to first time buyers. The home you want to buy must be newly built with a price of up to £437,600, for the South East of England.(see the Help to Buy site for more regional caps)
How does it work?
With a Help to Buy equity loan the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.
You must buy your home from a homebuilder registered for Help to Buy: Equity Loan.
The amount you pay for a home depends on where in England you buy it.
When getting a mortgage you will be able to borrow up to a maximum of 4.5 times your salary.
Help to Buy Equity Loan example
|For a property worth £320,000||Amount||Percentage|
How do I pay back the Help to Buy equity loan?
You must pay back the loan after 25 years or when you sell your home - whichever comes first.
You will not be charged any interest on the 20% loan for the first five years of owning your home.
However a management fee of £1 a month will be applicable from the date of purchase for the duration of the equity loan.
From year six, a fee of 1.75% is payable on the equity loan, which rises annually by CPI (Consumer Price Index) inflation plus 2%.
For full information about the scheme, please visit helptobuy.gov.uk