Help to Buy Explained
Help to Buy is available on all newly built homes and apartments up to a value of £600,000. All you need is a 5% deposit and a 75% loan-to-value mortgage. The other 20% is a government-backed equity loan.
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.
- Own 100% from day one – With the Help to Buy scheme you own 100% of your property but only pay 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 20% equity loan for the first five years – There will be no interest payable on the 20% equity loan for the first 5 years.
- How do you pay back the 20%? – A payment of 10% or more of your home’s prevailing market value can be made at any time. At the end of the 25 years the loan must be repaid in full. You will incur valuation fees and solicitors’ costs with any payments.
- What if you sell before 25 years? – The 20% value will be determined by two independent valuations if you wish to re-mortgage, sell or make a repayment. Home improvements for example, extensions or conservatories will not be taken into account, the value of these will be disregarded. Your mortgage provider will be paid first. The Help to Buy loan will then be paid and whatever is remaining will be yours.
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.
Help To Buy is currently under review. The terms and conditions are expected to change for purchases completed after April 2021.
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.