Help to Buy equity loan
You can get a low-interest loan towards your deposit, to help you get on the property ladder.
- Interest free loan for 5 years
- Property will be completing in the next 6 months
- Only available to owner occupiers
Who is Help to Buy for?
Whether you are a first time buyer or already own your own home, Help to Buy is a government scheme designed to help you advance up the property ladder.
The property you buy must:
- be a new build
- have a purchase price of up to £600,000
- be the only one you own
- not be sub-let or rented out after you buy it
How does Help to Buy work?
Help to Buy is an equity loan from the government up to 40% of the value of a property, provided you have a deposit of 5% you will only need a mortgage of 55% of your new home.
What properties can I buy with Help to Buy?
New build properties up to the value of £600,000 are eligible for the Help to Buy scheme.
When getting a mortgage you will be able to borrow up to a maximum of 4.5 times your salary.
How do I pay back the Help to Buy equity loan?
You must pay back the loan after 25 years or when you sell your home – whichever comes first.
You will not be charged any interest on the 40% loan for the first five years of owning your home.
However a management fee of £1 a month will be applicable from the date of purchase.
From year six, a fee of 1.75% is payable on the equity loan, which rises annually by RPI (Retail Price Index) inflation plus 1%.