Buying
Help to Buy Scheme is offered by the government to help the first time home buyers get a home with just as little as 5% deposit.
This scheme backed by the government offers an equity loan where the first-time buyers and existing homeowners can borrow from the government to buy a newly-built home.
Under this scheme, the government provides you 20% of the purchase price with no interest for the first five years and the buyer only needs at least a deposit of 5%, with a 75% mortgage to make up the rest. And the price of the property should be not more than £600,000.
In London, the government has increased the equity limit from 20% to 40% to reflect the higher property prices.
If you are in London, the government offers 40% of the purchase price and the buyer needs at least a 5% deposit, with a 55% mortgage to make up the rest.
If you wanted to buy a new build property worth £375,000, the Help to Buy Scheme in London equity load would break down as follows:
● £150,000 loan from the government
● £18,750 at least 5% deposit by the buyer
● £206,250 mortgage from a lender
The Help to Buy scheme is interest-free for the first five years and after that, the borrower pays an annual fee of 1.75% on the amount of the outstanding loan.
Who is eligible to avail this scheme?
Here are the general criteria are as follows:
● Must be at least 18 years old
● Must have at least 5% deposit of the purchase price of the property
● Help to Buy scheme is only for new build homes
● The property should not be more than £600,000
● The property cannot be sublet
● You cannot rent out your existing home and buy a second home through Help to Buy
This scheme will end in April 2021. A new version of the Help to Buy Scheme will run from April 2021 to March 2023 that is only for first-time home buyers. And there will be a new price cap for the maximum value of homes that can be bought through this scheme depending on the region. In London, the price cap remains at £600,000.
Bluestone Properties
Bluestone Properties are south west London estate agents. If you are a first-time home buyer, we can guide you through the options available of Help to Buy scheme. Call us at 0208 355 3405
How does Help Buy Scheme work?
This scheme backed by the government offers an equity loan where the first-time buyers and existing homeowners can borrow from the government to buy a newly-built home.
Under this scheme, the government provides you 20% of the purchase price with no interest for the first five years and the buyer only needs at least a deposit of 5%, with a 75% mortgage to make up the rest. And the price of the property should be not more than £600,000.
Help to Buy Scheme in London
In London, the government has increased the equity limit from 20% to 40% to reflect the higher property prices.
If you are in London, the government offers 40% of the purchase price and the buyer needs at least a 5% deposit, with a 55% mortgage to make up the rest.
If you wanted to buy a new build property worth £375,000, the Help to Buy Scheme in London equity load would break down as follows:
● £150,000 loan from the government
● £18,750 at least 5% deposit by the buyer
● £206,250 mortgage from a lender
The Help to Buy scheme is interest-free for the first five years and after that, the borrower pays an annual fee of 1.75% on the amount of the outstanding loan.
Who is eligible to avail this scheme?
Here are the general criteria are as follows:
● Must be at least 18 years old
● Must have at least 5% deposit of the purchase price of the property
● Help to Buy scheme is only for new build homes
● The property should not be more than £600,000
● The property cannot be sublet
● You cannot rent out your existing home and buy a second home through Help to Buy
Help to Buy Scheme 2021-2023
This scheme will end in April 2021. A new version of the Help to Buy Scheme will run from April 2021 to March 2023 that is only for first-time home buyers. And there will be a new price cap for the maximum value of homes that can be bought through this scheme depending on the region. In London, the price cap remains at £600,000.
Bluestone Properties
Bluestone Properties are south west London estate agents. If you are a first-time home buyer, we can guide you through the options available of Help to Buy scheme. Call us at 0208 355 3405
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