The government backed Help to Buy Scheme was launched in April 2013 aimed at getting people moving with a low deposit.
From 1st April 2021 Help to Buy is only available to First time buyers. There are two separate parts to the scheme; Mortgage Guarantee and Equity Loan.
If you are a First time buyer, Help to Buy can make it possible for you to get onto the property ladder. The aim of the scheme is to make mortgages more available to those who cannot afford a large deposit.
With the Help to Buy Scheme all that’s required is a 5% deposit, to purchase a new home of up to £600,000. This part of the scheme is only available on new build properties. In January 2014 the second part of Help to Buy became available on ALL properties. The government will lend you up to 20% of the value of the property in the form of an equity loan; this is interest free for the first 5 years and then acquires an interest rate of 1.75% which rises annually after year 6.
The loan can be repaid at any time or when you sell your home. This then allows you to secure a 75% mortgage enabling lower monthly payments and making new homes more affordable for you.
All our solicitors are highly qualified and knowledgeable regarding the Help to Buy scheme. If you have any further queries about Help to Buy or conveyancing for your purchase, please do not hesitate to get in contact with us.