Help to Buy Scheme

What is Help to Buy?

The main aim of Help to Buy is to improve the access to and affordability of mortgages for newly built flats and houses, specifically for First Time Buyers who cannot afford a large deposit.
The current Help to Buy scheme runs in England to March 2023. There are other similar schemes available in Scotland, Wales and Northern Ireland.

The 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.

The Key Facts about Help to Buy
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The government will lend you up to 20% (or 40%) of the value of your new property through an equity loan, which will be interest-free for the first five years and can be repaid at any time or on the sale of your home.

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You will only need a minimum 5% deposit to qualify.
Help to Buy is only available for first time buyers purchasing a brand new property.
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You can buy a property for up to £600,000 with Help to Buy. Regional equity loan price caps are in place ranging from £186,100 to £600,000.

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There is no household annual income limit, but you must not own a home now or in the past in the UK or abroad and not had any form of sharia mortgage finance; customers need to secure up to a 75% mortgage.

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The government will lend up to 20% (40% in London) of the value of a new build home through an equity loan. The buyer contributes a deposit of their own of between 5% and 20%, then the Help to Buy scheme tops that deposit up to make it a 25% deposit which leaves the buyer needing a mortgage for 75% of the property value.

The government equity loan is interest free for the first five years after which a fee of 1.75% will be charged from year six, rising annually by RPI inflation plus 1%. The equity loan can be repaid at any time within 25 years (or the terms of the mortgage), or on sale of the property. The initial loan is repaid, plus a proportion of any growth in the property value.

Help to Buy 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 must not own a home now or in the past in the UK or abroad and not had any form of sharia mortgage finance; customers need to secure up to a 75% mortgage.

The current Help to Buy scheme runs to March 2023. There are other similar schemes available in Scotland, Wales and Northern Ireland.

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