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Help to buy

The Government has created the Help to Buy scheme to help people buy their own home.

The following schemes are currently available:

Quick reference guide

The table below provides a quick guide to how each scheme works and eligibility.  

Option
How it works
Eligibility
ISA - Help to Buy
  • First payment to your ISA can be up to £1200 and you then pay up to £200 per month. 
  • When you purchase your conveyancer will apply for the extra 25%
  • Apply direct to bank or building society
  • Commenced December 2015
  • Purchase price up to £450 000
  • Only home you own
  • Where you intent to live
Equity Loan - Help to Buy 
  • The Government lends you up to 40% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.
  • You won’t be charged loan fees on the 40% loan for the first five years of owning your home.
  • After that you will pay a fee on each of the equity loans of 1.75%, rising annually by the increase in the Retail Price Index (RPI) plus 1%
  • Apply direct to Help to Buy Agent – Aldwyck Housing Group
  • Commenced March 2012
  • Equity loans are available to first time buyers as well as homeowners looking to move.
  • The home you want to buy must be newly built with a price tag of up to £600,000.
  • You won’t be able to sublet this home or enter a part exchange deal on your old home.
  • You must not own any other property at the time you buy your new home with a Help to Buy: 
Mortgage Guarantee - Help to Buy
  • Government offers lenders the option to purchase a guarantee on mortgage loans.
  • Lenders taking part are able to offer home buyers more high loan-to-value mortgages (80-95%).
  • You will still be fully responsible for your mortgage repayments. So if you have a 5% deposit, you will need to take out and pay back a 95% mortgage.
  • Apply direct to banks or lenders.
  • Have a purchase price of £600,000 or less
  • Be the only home you own
  • Not be rented out after you buy it
  • Not be bought through shared ownership, shared equity or any other publicly funded mortgage scheme
  • Be bought with a repayment (rather than an interest-only) mortgage
  • You don’t have to pay any additional fee to the Government to get a Help to Buy supported mortgage
  • The size of the mortgage you apply for must be less than 4.5 times your income.
  • The Help to Buy: mortgage guarantee scheme will run until 31 December 2016.

 

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