Whether you want to get onto the housing ladder or move up it, the Government backed Help to Buy scheme makes it possible with as little as a 5% deposit.
The scheme is made up of two elements, the first being an equity loan where the Government will lend purchasers up to 20% of the property value on a new build home from a participating developer.
How does it work?
- Help to Buy equity scheme is available on new home developments only
- Maximum purchase price is £600,000
- The property must be your main residence. Help to Buy is not available for buy to let investors
- You own 100% of your home but you only have to cover 80% with your mortgage and deposit
- The remainder is covered by an equity loan funded by the Homes and Communities Agency and is held as a second charge on your property
- This loan must be repaid after 25 years, when the mortgage comes to an end or when you move, whichever happens first
- There is nothing to pay on the equity loan for five years
- You will repay the equity loan when you sell your home based on the same percentage split at the time of sale
- Properties are available on Help to Buy throughout England only.
Am I eligible?
- You will require funds for a minimum 5% deposit on the property.You will require funds for a minimum 5% deposit on the property
- You will need funds available to meet other costs associated with purchasing a property, for instance solicitors fees, stamp duty and removal costs
- Your mortgage on the Help to Buy property must be affordable and sustainable
- The Help to Buy property must be your only property at the time of completion
- You cannot rent out your existing property to buy a second property
- Part exchange is not available with Help to Buy
- You cannot sublet your Help to Buy property
- Applicants that make fraudulent claims for Help to Buy assistance will be liable to criminal prosecution and will always be required to repay the Help to Buy equity loan immediately.