The Help to Buy – equity loan scheme gives first time buyers and next time buyers the opportunity to purchase a new build home with the help of an equity loan guaranteed by the government.

Help to BuyYou buy a minimum 80% equity share and, as part of that, you’ll need to be able to provide a deposit of at least 5% of the property value from savings or from some other source (like a gift from a relative).

An equity loan of up to 20% of the property value will be provided through Help to Buy. It’s interest-free for 5 years. After that, you pay an annual fee of 1.75% on the amount of the outstanding loan. The fee will increase each year by inflation (Retail Price Index (RPI)) + 1%.

You can start repaying the help to buy equity loan after you’ve owned the home for a year, but you’ll need to be able to pay a minimum of 10% of the property value at the time of repayment.

When you want to sell your home, you’ll need to repay the percentage equity loan that is still outstanding. So, for example, if you originally bought 80% of the property and you hadn’t repaid any of your equity loan, your repayment on selling would be 20% of the market value at the time when you sell.

For more information, please call one of our qualified advisers for further information on 01489 580020 or via the “contact us” page with your requirements.

Am I eligible to buy a home through Help to Buy equity loans?

  • You must be at least 18 years old
  • There is no maximum household income level
  • You will normally require at least a 5% deposit of the full purchase price
  • You must take out a mortgage which will need to be for 25% or more of the full purchase price
  • If a home owner already you must have sold your current home before or at the point of completion on your Help to Buy home
  • You cannot rent out your existing property to buy a second home through Help to Buy
  • Part Exchange is not available through this scheme
  • You cannot sublet your Help to Buy home
  • You cannot buy a home on sale for more than £600,000
  • You must be able to prove you can afford the mortgage repayments and other outgoings on the home you wish to buy.

Call us on 01489 580020 and we can take you through the initial help to buy affordability calculator which will determine whether the property is sustainable long term.

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