The Government’s Help to Buy scheme was launched in April 2013 and is designed to help those who cannot afford a deposit of more than 5% get onto the property ladder.  Since its launch, it has already helped thousands of people move into new build properties.

Working with a wide range of new build developers over the years we have helped many clients utilise the Help to Buy scheme since its inception.  Our team’s knowledge of the market means that we are ideally placed to provide advice and guidance on this and other schemes available to help first-time buyers.

How does the Help to Buy equity loan scheme work?

If you’re a first-time buyer looking to purchase a new build property but are unable to afford a deposit larger than 5%, you may be eligible for the Help to Buy equity loan scheme.  On the condition that you contribute a deposit of at least 5%, the Government will lend 20% of the purchase price as a loan to you. This loan is interest-free for 5 years.

You will then need a mortgage for the remaining 75% of the property (a loan to value which gives access to more competitive interest rates). Once you reach the sixth year of your loan, you will start paying interest at 1.75% on the government’s 20% loan – this rate will go up each year by any increase in the Retail Price Index (RPI) plus 1%.

You should be aware that the Government’s stake in your home will always be 20% until you repay it – meaning that if your home rises in value, so does the stake the Government owns. The loan can be repaid in full at any time. However, it must be paid off in full after 25 years, or if you move house.  Those living in London qualify for further support, with the Government granting an equity loan of up to 40% of the value of the property under the same terms as above.

Check your eligibility

To be eligible for the Help to Buy equity loan scheme, you will need to meet the following conditions:

  • You must be able to provide a minimum 5% deposit on the property.
  • The property you are purchasing must be a new build property and be sold by a Help to Buy registered homebuilder.
  • The maximum value of the property cannot be over regional price caps (these vary across the UK)
  • The property bought must be the only property you own.

If you are considering utilising the help to buy scheme to purchase your first home, get in touch with us to help check your eligibility and support you with obtaining your first time buyer mortgage. You can contact us on 0800 138 5856 or get in touch below.

Handy Help to Buy Schemes UK Advice & Articles

The first time buyer mortgage market is still strong in the UK, with lenders offering up to 100% loan to value products (depending on property value and if your family are able...
You may have heard of the term ‘adverse credit’ but what actually is this? Adverse Credit Meaning This is when your credit score and credit file are affected negatively due to your...
“How long are mortgage applications taking?”, “How long after valuation to mortgage offer” and “How long does it take for a mortgage to be approved?” are questions regularly raised by excited and...
A second charge mortgage is essentially a second mortgage on your property. If you wish to release equity and money from your property you can either remortgage your current mortgage to take...
Today we are sharing our top tips on what you can do to improve your chances of successfully being approved for a mortgage and how to make the process much quicker and...
Now may be the best time to remortgage and save money on your monthly mortgage payments with interest rates remaining low. The Bank of England have held the base rate at 0.1% after...
As a business, we always want to give back and help people and causes all over the World. Whether we help you with a remortgage, a moving home mortgage, a buy-to-let mortgage,...
If you are interested in understanding how to pay off your mortgage quickly then we are here to help! There are many ways to do this – have a look below to...
We are so excited to announce that for the second year running we have been named Best Broker for Protection at the Mortgage Strategy Awards. This award recognises the UK broker that...
Whilst circumstances are going to differ from person to person, it definitely pays to discuss things with one of our mortgage and protection advisers. Here are a few general things to consider:...
Nobody likes to think about the worst happening to them or their family. At a time of loss, the last thing a family needs is the upset and stress of any financial...
IR35 is a bit of a head scratcher and with the new rules coming into force you will need to consider if IR35 applies to you. The new legislation aims to ensure...
What do John Terry, Paris Hilton, Kendall Jenner and Simon Cowell have in common? (Apart from being millionaires?!). Sadly, they have all had their homes broken into and their possessions stolen. We...
While most homeowners have a mortgage, many don’t realise that they could save money by remortgaging. Some mortgage interest rates have fallen below 1% in recent weeks and new mortgage products and...
One of the most common questions we get asked at the moment is about getting a mortgage if you have been furloughed. You may feel impacted or concerned but we are here...
You have probably seen the news but we wanted to let you know the property announcements detailed in the budget last week. Stamp Duty Holiday has been extended for 3 months! The...
Our prime consideration is the health and welfare of our gang and further to the Government directive we have now transferred all working members of Key Solutions to their home bases. We...
Statistics show that on average, people living in the UK will pay off their mortgage by the time they are 69, but do you know when your last payment will be? At...
When we say first time buyer, what comes into your head? We bet you’re thinking of someone in their early twenties who lives with Mum and Dad. Well, nowadays there’s no typical...
Yeah… you read that correctly. We are the BEST MORTGAGE BROKER IN THE UK! We were delighted to have been shortlisted for the Best Broker in the UK award at the MoneyAge...
The Help to Buy Scheme recently celebrated its 5th birthday this year!
No, it’s not elephants ruining your house, we just liked the picture!