What is Help to Buy and how can it help me?
Help to Buy is a new government scheme designed to boost the property market and help homebuyers get on or move up the property ladder. The government is lending homebuyers up to 20% of the purchase price of their new home via an equity loan, with the remaining portion paid through a traditional mortgage and a deposit of at least 5%. This means your mortgage repayments will be lower as you’ll need to borrow less. The Help to Buy scheme is only available on newly built properties to the maximum value of £600,000.
What is an Equity Loan and how is it repaid?
The Government will lend homebuyers up to 20% of the value of a new build property. 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 RPI inflation plus 1 %. The equity loan can be repaid at any time within 25 years (or the terms of the mortgage), or when the property is sold.
Who is eligible?
The scheme is open to both first time buyers and those who have previously owned a property.
To qualify you’ll need:
• A deposit of at least 5% of the purchase price
• A good credit history
• Proof that you can keep up with the repayments on your mortgage
• Enough money to cover the costs associated with purchasing a property, such as solicitor fees and surveys
• You will not be allowed to buy a second home through the scheme.
Where can I buy with Help to Buy?
Search SmartNewHomes for new build properties and keep an eye on our Help to Buy blog for details of developers holding Help to Buy information events.
Where can I register for updates on the scheme?
Sign up to SmartNewHomes to receive our newsletters and get the latest updates on properties in your area.
HelptoBuy Advice 