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Help to Buy is a Government initiative to assist people getting on or moving up the housing ladder in Gloucester and the whole of the UK who can afford mortgage payments but are struggling to raise a deposit.
Last updated 17/2/2021
Many people in Gloucester and throughout the UK 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 a government scheme which could make getting on to the housing ladder more accessible. It helps first time buyers purchase a home with as little as 5% deposit.
If you are a first time buyer and looking to purchase a property in Gloucester up to the value of £349,000 then Help to Buy could be a good option for you!
What is the Help to Buy Equity Loan (2021 - 2023) scheme?
The Help to Buy - equity loan scheme is only available for first time buyes purchasing new build homes.
Under the scheme
- Government provides equity loan of 20%
- You arrange a mortgage for 75%
- Meaning your deposit is 5%
You won't be charged loan fees or interest on the 20% loan for the first five years of owning your home, but interest will be payable on it from year 6.
If the home in the example above sold for £210,000, you'd get £168,000 (80%, from you mortgage and the cash deposit) and you'd pay back £42,000 on the loan (20%). You'd need to pay off your mortgage with your share of the money.
Many new homes developers advertise plots that are eligible for Help to Buy in Gloucester. Here is a list of the current new homes for sale in Gloucester.
Am I eligible for the Help to Buy equity loan (2021 - 2023)?
To find out if you are eligible you simply need to contact a mortgage advisor or mortgage lender that is participating in the scheme. However, use the quick checklist below to see if you could be eligible for the scheme:
- Buyers need a minimum of 5% deposit
- Available on new build property in Gloucester up to the value of £349,000
- You and anyone you're buying a home with must:
- not own a a home or residential land now or in the past in the Uk or abroad.
- not have any form of sharia mortgage finance.
- Available for properties in the UK
- Borrowing from a participating mortgage lender.
Before you get started, make sure you have funds to pay for:
- A reservation fee to reserve your home (up to £500)
- a 5% deposit on exchange of contracts
- other fees on completion (stamp duty, legal fees, mortgage fees).
Here's a full guide on the Help to Buy: Equity Loan (2021-2023)
What has happened to the previous Help to Buy Scheme (2013-2021)?
Applications for Help to Buy: Equity Loan (2013-2021) ended on 15th December 2020.
However the completion deadline for those purchasing with the scheme has been extended until May 31st 2021. The extension has been made to help with problems caused by the current coronavirus pandemic.
If you have any questions regarding Help to Buy or would like to find out about participating developments in Gloucester then please call us on 01452 726443.
*Eligible applicants will be offered an equity loan up to a maximum of 20% of the purchase price (based on the open market value). Applicants are required to fund at least 80% of the purchase price by means of a conventional mortgage, savings and any deposit where required. For the first five years there is no fixed fee charged on the equity component. At the start of year six a fee of 1.75% is payable on the equity loan, which rises annually by RPI inflation plus 1%. The equity loan is provided by the HCA and held as a second charge. Terms and conditions apply and full details will be provided on request. This offer is subject to status and only available on selected properties in England only. It is not offered with any other promotion. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE