Help to Buy
The Help to Buy scheme is a scheme offered by the Government to help people in buying their own home. The scheme can allow you to buy a new-build home with a deposit from as little as 5%.
By saving just a 5% deposit, you could receive a Government equity loan of up to 20% of the purchase price. The loan is interest-free for the first five years, which helps to make your monthly mortgage repayments more affordable.
The government’s new Help to Buy Scheme, which will replace the current scheme, can be applied for now but completion should be after April 1st 2021. The new scheme introduces property price caps and is restricted to first-time buyers only, supporting people onto the housing ladder.
Help to Buy requirements
Help to Buy has a few special requirements:
- It covers full home ownership only, and is therefore not available for shared equity or shared ownership.
- It is available for the purchase of a person’s primary home only, so not for additional homes, investment or buy-to-let purchases.
- It only applies to capital repayment mortgages rather than interest-only mortgages.
- Buyers must not receive help with their deposit from a Local Authority or other public body.
- A HomeBuy agent check will be required.