Help to Buy
Help to Buy is a Government backed equity loan aimed at helping both first time buyers and existing homeowners purchase a new build property up to a maximum value of £600,000.
WHAT IS HELP TO BUY?
Own 100% of your home.
Help to Buy: Equity Loan is the government-backed initiative aimed at helping homebuyers across England purchase a new-build home with as little as a 5% deposit. Similar schemes are also available in Scotland and Wales, with a scheme specific to property in London also in operation.
HOW DOES IT WORK?
Through Help to Buy: Equity Loan homebuyers with a minimum of 5% deposit will be eligible to receive an interest free equity loan from the government of up to 20% of the value of their new home, leaving them only needing to secure up to a 75% mortgage from a bank or building society.
The equity loan must be repaid after 25 years, or earlier if you sell your property and 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 scheme is available to both first-time buyers and existing homeowners on new-build properties up to a maximum value of £600,000.
Help to Buy: Equity Loan is available to homebuyers regardless of their annual personal income with mortgages available from a number of high street lenders.