Help To Buy
How it works:
With a 5% deposit you can use the Help to Buy scheme to purchase your dream home. The Government will lend you up to 20% of the value of the chosen property through an equity loan which can be either repaid at any time, or on the sale of your home in the future.
This then means you only need to find a 75% mortgage with your self funded 5% deposit.
There is a maximum home value cap of £600,000.
FAQ's:
Can I buy any home with Help to Buy?
You can buy any new build home in England up to £600,000. Not available on second homes or buy to let purchases.
Can everyone get Help to Buy?
Yes! Help to Buy is not just for first time buyers, and there is no maximum income cap. If you can get a mortgage, you can get Help to Buy.
Are there any fees to pay?
No. The Help to Buy equity loan is interest free for 5 years. After that you pay a rate of 1.75% rising each year by 1% plus the RPI.
The Dymchurch, Westview Point, New Romney:
Asking Price: £250,000
Your Deposit: £12,500
Government Contribution: £50,000
Mortgage: £187,500
An Example:
