Help to Buy is a government funded scheme 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 is 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 interested 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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