The Help to Buy scheme means the government will lend you up to 20% (40% in London) of the full purchase price of a new-build home. This is called an equity loan.
You must buy your home from a homebuilder registered for Help to Buy: Equity Loan.
The amount you pay for a home depends on where in England you buy it and regional equity loan price caps are in place for this scheme ranging from £186,100 to £600,000.
Example: for a home with a £200,000 price tag:
Example of how much your deposit, mortgage and equity loan may be if you buy a new home worth £200,000
For the first 5 years:
From year 6:
You will continue to pay interest until you pay off your loan in full.
The interest rate will rise in April each year based on the rate of inflation at the time (according to the Consumer Price Index), plus 2%. If the rate of inflation is 0% or less, the interest rate will rise by 2%.
Equity loans are available to first time buyers only. The home you want to buy must be newly built and regional price caps apply.
You won’t be able to sublet this home or enter a part exchange deal on your old home. You must not own any other property at the time you buy your new home with Help to Buy.
The Mortgage Brain
Gloucester House
29 Brunswick Square
GLOUCESTER
GL1 1UN
0333 340 8888
info@themortgagebrain.net
The Mortgage Brain is a trading style of Elmco Ltd which is authorised and regulated by the Financial Conduct Authority (FCA). Our Financial Services Registration number is: 445887. ©The Mortgage Brain 2013 – Registered in England No 04821075, HATS Gloucester Ltd, 162 Hucclecote Road, Hucclecote, Gloucester, GL3 3SH.
We do not charge a fee for a mortgage consultation. There may be a fee for arranging your mortgage. The precise amount depends on your circumstances. However, it will be no more than £495 or 1% of the advance-whichever is greater. Your home may be repossessed if you do not keep up repayments on your mortgage The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. www.fca.org.uk
This website is protected by Google ReCaptcha – Privacy | Terms
We use cookies on this website. You are free to manage cookies settings via your browser at any time. To learn more about how (and why) we use cookies, take a look at our Privacy Policy.