Help to Buy is a government-funded scheme that aims to assist UK residents with purchasing their own, new-build home. If you are unable to fund a large percentile deposit, the Help to Buy Scheme can make purchasing your own home more affordable through a 20% equity loan granted by the government.
Through the scheme, you will be granted an equity loan which equates to 20% of the value of the home you wish to purchase. You will be required to provide a deposit of 5% or more, and your secured mortgage will make up the rest of the sale of your property.
The Help to Buy loan is interest-free for the first five years (from the date of completion). There is an additional £1 management fee to be paid on a monthly basis.
After this 5 year period, the monthly management fee of £1 continues and a monthly interest fee is added. This interest will be calculated at 1.75% of the equity loan value*.
*Please note your interest fee will rise each April by the Retail Price Index (RPI), plus 1% until you repay your loan in full
Repayment
During any of the following scenarios, you will be required to purchase your loan in full:
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Who is Eligible?
The Help to Buy Scheme can only be used with the purchase of new-build homes.
You must also be a first-time buyer and the scheme is only eligible on properties between the value of 255,600 and £600,000 within the West Midlands.
Try our mortgage calculator and discover what new homes are available to you.
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