Help To Buy

Help to Buy is a government scheme that helps you to purchase your own property with a deposit as low as 5%. Whether you're taking your first step onto the property ladder or moving up a rung, the scheme helps hard-working people like you take steps to purchase a property.

Help to Buy is available in England from house builders registered to offer the scheme. In March 2014 the Government announced an extension of the initiative up to 2020 which is great news for those looking to get onto the property ladder.

Designed to increase the supply of low deposit mortgages and the number of new build properties being built there are two schemes available; the Mortgage Guarantee and the Equity Loan.

Mortgage Guarantee

This scheme works the same as any other mortgage. The Government offers lenders the option to purchase a guarantee on Mortgage Loans and as a result of this support it allows for higher Loan to Value (LTV) mortgages of up to 95%.

Equity Loan

You will require a minimum of 5% deposit or cash when looking to purchase a property and the government lends up to 20% of the cost of your new build home. There are no loan fees for the first 5 years of owning the property.

Some additional key points regarding the scheme

  • Available on new build homes up to £600,000 in England, £250,000 in Scotland and £300,000 in Wales.
  • The Government will lend you up to 20% of the property value through an equity loan which can be repaid at any time during the loan term or on the sale of your home.
  • In England and Wales, you won’t be charged any loan fees for the first 5 years of owning your home. In Scotland, there are no loan fees to be paid.
  • You’ll only need to secure up to a 75% mortgage from a bank or building society.
  • There are a range of competitive mortgage rates available with this scheme.

The team at Properties on the Market can assist those who qualify for the scheme, so if you have any questions contact us today for further information.

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