12th March 2020
The government’s Help to Buy: Equity Loan scheme is designed to get people into a brand-new home with just a 5% deposit. In essence, the government will lend you up to 20% of the cost of your new-build home, leaving you to pay a 5% deposit and take out a 75% mortgage to cover the rest of the funding. Most importantly, you won’t be charged any fees on the 20% loan for the first five years.
To be eligible for a Help to Buy loan, your new home must be newly built and under £600,000. You can’t own any other property and you won’t be able to sublet your new home or take a part-exchange deal on your old property.
The Help to Buy: Equity Loan scheme is only available in England and, in London, where house prices are historically higher than the rest of the country, the upper limit for the equity loan provided by the government is 40%.
The Help to Buy: Equity Loan scheme will run until 2023 – on 1st April 2021, it will be restricted to first-time buyers only and regional price caps will apply. If you’re thinking of taking advantage of the initiative and currently own a home, you’ll need to apply before April 2021.
If you’re interested in buying a new home with Help to Buy, contact our team of expert mortgage advisers and we’ll explain in more detail how the scheme can apply to you and get you started on your moving journey. Call us on 08454 500200 or click here to make an enquiry.
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