Help to Buy Explained
Under the latest guidelines for 2021-23, Help to Buy will be available to first time buyers in the West Midlands on newly built homes up to a value of £255,600. All you need is a 5% deposit and a 75% loan-to-value mortgage. There is a government-backed equity loan available, up to the value of 20% of your property.
How does it work?
- 5% deposit to pay ~ Mortgages are available [subject to status] through an independent Financial Advisor. We can arrange an unconditional, no obligation chat to see if it will work for you.
- Pay as little as 80% up front. The government will provide an equity loan on the remaining 20% for up to 25 years or until the property is sold.
- Nothing to pay on the equity loan for the first five years.
- How do you pay back the equity loan? – In the sixth year after moving into your home, you will begin to pay interest on the amount borrowed. You can choose to repay it all or in part at any time, and your first part repayment will need to be at least 10% of what your home is worth at that time. If you sell your home, you will need to repay all of your equity loan. See the Help to Buy guide for the full terms and conditions on repaying early.
- What if you sell before 25 years? – The 20% value will be determined by an independent valuation if you wish to re-mortgage, sell or make a repayment.
Do I Qualify?
Full details of the Help to Buy scheme including eligibility criteria can be found at homesandcommunities.co.uk/help-to-buy where a full Buyers Guide can be downloaded. Alternatively you can speak to a Help to Buy agent, the number is 03333 214 044.
Terms & Conditions
A loan for the remaining 20% of the purchase price will be provided by the Government for up to 25 years or until the property is sold, secured by a second charge on the property. At the time the property is sold or re-mortgaged, the repayment sum will reflect the 20% of the market value of the property at that time. No interest is payable for the first five years as per terms and conditions of the Help to Buy scheme. You must be an owner / occupier and Help to Buy is subject to eligibility, status, terms and conditions of the scheme.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.