Help to Buy
Struggling to save enough deposit? With Help to Buy: Equity Loan homebuyers looking to purchase a new home can now do so with as little as 5% deposit and could get up to a 20% equity loan, meaning they only need to secure a 75% mortgage with a lender. A similar scheme is also available in Wales and Scotland.
Through Help to Buy: Equity Loan homebuyers with a minimum of 5% deposit will be eligible to receive an interest free equity loan from the government of up to 20% of the value of their new home, leaving them only needing to secure up to a 75% mortgage from a bank or building society.
The scheme is available to both first-time buyers and existing homeowners on new-build properties up to a maximum value of £600,000.
The equity loan can be repaid at any time or on the sale of your property and is interest free for the first five years. From year six a fee of 1.75% is payable on the equity loan, which rises annually by RPI inflation plus 1%.
Help to Buy: Equity Loan is available to homebuyers regardless of their annual personal income with mortgages expected to be available from a number of major high street lenders.
To take advantage of Help to Buy search for your new home and speak to a member of the Ashberry Homes team.
Terms and conditions
Help to Buy is subject to the Homes and Communities Agency’s (HCA) terms and conditions and is available on new build homes up to £600,000 to customers where the property represents their only residence. The scheme is not available on second, additional homes, buy-to-let or let-to-buy properties and is subject to a HomeBuy agent eligibility check.
The equity loan is interest free for the first five years and needs to be a minimum of 10% of the purchase price up to a maximum of 20%. After five years, an annual fee of 1.75% of the outstanding equity loan is charged. This is increased annually by RPI plus 1%.
The equity loan must be repaid after 25 years, or earlier if you sell your home.
A monthly management fee of £1 is payable by the equity loan borrower by direct debit, from the start of the loan until it is repaid. The management fee and interest fees are not capital repayments to the equity loan and do not reduce the amount owing.
Help to Buy operates under terms and conditions imposed by the HCA and may be subject to change. Please visit www.helptobuy.gov.uk for further information.