Help to Buy is a government backed shared equity scheme first introduced in April 2013, designed to help assist both first time buyers and people moving home who may not necessarily have a large enough deposit to facilitate the purchase they want.
You need to put down a minimum 5% deposit and can receive an equity loan from the government of up to 20% (or up to 40% using the Help to Buy London scheme, as long as the property is within an area accepted under this scheme). This means you only need to borrow a lower percentage mortgage amount from the lender helping to increase your chances of being accepted and on better terms. The equity loan is interest-free for the first 5 years, after which you will need to service the interest on the equity loan as well as your mortgage repayments.
Naturally with any government backed scheme there are pros and cons to consider and terms to be aware of, so you’ll need to decide if this scheme is right for you. Also, it is worth noting the scheme can only be used to purchase a new build property and the developers will need to be registered with Help to Buy, but more often than not they will be.
We’ve helped many people purchase their new build home using Help to Buy and we will help sort all the necessary paperwork (and explain the process and steps you need to take), so if you are considering taking advantage of this scheme, please feel free to get in touch.
Send us a message and we'll call you to discuss your requirements and explain the next steps.
We will always cover the cost of an initial consultation, so feel free to get in touch!