When looking to buy a new home there are so many government, home owner assistance schemes around, it’s hard to know which works best for you and your future plans. We spoke with Head of Sales and Marketing, Richard Forman, to find out a little more about one of these schemes - the Help to Buy: Equity Loan.

Firstly, what is the Help to Buy: Equity Loan Scheme?

The Help to Buy: Equity Loan Scheme is designed to help first time home-buyers as well as existing homeowners to purchase a new build property. The Government will lend you up to 20% of the cost of an approved new home, meaning you only need a 5% deposit to be able to secure a 75% mortgage covering the rest of the property price.

For example, for a property for sale at £200,000 you would need to raise a deposit of £10,000 (5%), take out a £150,000 (75%) mortgage and the Help to Buy: Equity Loan will put forward the remaining £40,000 (20%).

The Help to Buy: Equity loan doesn’t charge interest for the first five years and if you decide to put your property on the market and sell, you will have to pay be the loan in full from the proceeds of your sale. Alternatively, should you wish to stay where you are after 5 years, you will pay back your Equity Loan at the agreed interest rate.

What’s great to see is how much interest there is in the Help to Buy: Equity Loan from buyers and prospective buyers. It shows us that there are a number of people eager to get on the housing ladder. Help to Buy makes buying property so much more accessible by enabling those with lower deposits to buy their own home, which they would otherwise wouldn’t be able to do.

How do you qualify for this scheme?

As with many of these schemes there are a few restrictions but the main criteria is:

  • You must be buying your first home or a home owner looking to move
  • The property you’re looking to purchase must be under £600,000
  • The property cannot be sublet
  • You cannot own any other property at the time you buy your new home.

You can find out more about how to qualify on the Help to Buy: Equity Loan website or by watching this video.

Does Forty/8 have any properties available under the Help to Buy: Equity Loan Scheme?

Yes, we currently have two developments available through Help to Buy: Equity Scheme - Aria, Leicester and Orleans House, Liverpool.

Aria is a luxury development in the heart of Leicester city centre. It’s been an incredibly popular scheme and we are now over 70% reserved. The development is beautifully finished and designed with contemporary urban living in mind. The apartments are finished to an exceptional standard with high specification kitchens and bathrooms and all appliances included. Aria also benefits from a concierge service.

Two-bedroom apartments start from £205,000 and can be purchased through Help to Buy: Equity Loan with a 5% deposit of £10,250, a Help to Buy: Equity Loan of £41,000 and a mortgage of £153,750.

Orleans House, Liverpool is an absolutely stunning, Grade II* listed converted cotton warehouse in central Liverpool. The development offers modern luxury apartments right in the heart of the action – just minutes from Liverpool ONE and excellent transport links. Orleans House also benefits from a concierge service. Like Aria, Orleans House has proven to be extremely popular with buyers and we now only have a small selection of two-bedroom apartments available with prices starting from £163,000. To purchase this apartment using a 20% equity loan of £32,600, you would need a 5% deposit of £8,150 and a mortgage of £122,250.

If you're interested in finding out more about the Help to Buy Scheme or would like more information on our developments, contact our sales teams. Our marketing suites are open daily 10am - 5pm:

Aria, Leicester: +44 (0)116 255 9733 / enquiries@arialeicester.co.uk

Orleans House, Liverpool: +44 (0)151 236 7777 / enquiries@orleanshouseliverpool.com

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