With just a 5% deposit needed with a 75% mortgage, see how the Government-backed Help to Buy – Equity loan scheme could help you open the door to home ownership.
What is Help to Buy
The Help to Buy – Equity Loan is a Government-backed scheme exclusive to new build homes. It was set up by the Government in 2013 and has already helped thousands to make their move onto or up the property ladder.
The idea behind the scheme is that, with the Government providing a portion of the required equity in the form of the equity loan, homebuyers need to borrow less from traditional lenders, and require a smaller deposit.
With the Help to Buy – Equity Loan – moving into a Barwood Home could be easier than you think.
The existing Help to Buy: Equity loan scheme which is currently available to first time buyers AND current homeowners is due to come to an end on the 31st March 2021. However this has been extended to 31st May 2021. A new scheme will come into effect from the 1st June 2021; however, this will be restricted to first time buyers only with regional price caps depending on where you live in England. The government will continue to provide equity loans for 20% of the cost of a new build property, allowing you to purchase a new home with just a 5% deposit and 75% mortgage.
Current homeowners who wish to purchase using the existing Help to Buy scheme could still be eligible, if they complete the purchase process buy 31st May 2021. If you would like further information on this, please speak to a sales advisor at your local development.
How does the equity loan work?
By using the scheme, you need just a 5% cash deposit, with the Government providing an equity loan of up to 20% of the value of the property you’re buying. You then need to secure up to a 75% mortgage which opens the door to more competitive lending rates and may make your repayments more affordable than you first thought.
What’s more, you won’t be charged interest or fees on the Government equity loan for the first five years of owning your home, and you can choose to repay the equity loan at any time without penalty, or on the sale of your home.
The scheme is available for first-time buyers and existing homeowners alike, on new homes currently up to a maximum purchase price of £600,000.
So, if you thought a high-quality brand-new home was out of reach – think again. Come and speak to one of our sales advisors, and let’s see if we can get you moving.