Help to Buy
With the Government backed Help to Buy scheme, you could buy a new home with just A 5% deposit.
You could get an equity loan from the Government worth up to 20% of your new home, which means you would only need to secure a 75% mortgage. You own 100% of your home from day one.
The scheme is open to both first time buyers and people who are looking to move on from their existing home, and is available on new homes in England worth up to £600,000. So relax, because buying a new home could be easier and more affordable than you thought!
Help to Buy is a Government backed equity loan scheme that is designed to make home ownership more affordable for both first time buyers and people who are looking to move on from their existing home.
With Help to Buy, the Government will give you an equity loan worth up to 20% of the value of your new home. That means you will only need to put down a 5% deposit and take out an affordable 75% mortgage. You own 100% of your home from day one.
Help to Buy is available to both first time buyers and people who are looking to move on from their existing home, subject to the purchaser meeting the relevant eligibility criteria.
The equity 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 Retail Price Index inflation plus 1%.
The equity loan can be repaid at any time within 25 years (or the terms of the mortgage), or on the sale of the property.