Help to Buy is a Government initiative to help first time buyers and those looking to move up the housing ladder purchase a brand new homes with only a 5% deposit.
Many people are unable to purchase a home or move house because of the large deposits required in today's difficult mortgage market.
The Help to Buy scheme is designed to help overcome the deposit gap for new home buyers.
Two schemes are included?
- Help to Buy "equity loan", available on new build properties now. You can find details on this scheme here.
- Help to Buy "mortgage guarantee", designed to encourage greated provision of mortgages for people with smaller deposits.
What is Help to Buy: equity loan?
Help to Buy: equity loan will be available to all that aspire to own a new build home, but struggle to access or afford the repayments on a low deposit mortgage. Whether you are looking to buy your first home, or move up the property lader, you could now benefit from getting additional government help to buy a brand new house through the Help to Buy: equity loan sheme.
Under the scheme
- Government provides equity loan of 20%
- You arrange a mortgage for 75%
- Meaning your deposit is 5%
Many developers advertise plots that are eligible for Help to Buy: equity loan on michaeltuck.co.uk, so you can search for Help to Buy homes now using our property search.
Am I eligible for Help to Buy: equity loan?
To be eligible for a Help to Buy: equity loan property, you must:
- Be able to demonstrate access to savings or funds to pay, if required, a deposit (which may be 5% or more of the purchase price), legal fees, stamp duty and costs of moving,
- Be purchasing a property costing £600,000 or less
- Have a good credit history
- Take out any mortgage with a qualified lender (e.g. a bank or building society)
- If you care a home owner wishing to buy a larger property for your family you will need to remove your name(s) from any other property deed prior to or at the point of completion of your new property.