WHAT IS THE HELP TO BUY SCHEME?
How to buy a Forty/8 property using the Help to Buy: Equity Loan
The UK Government’s Help to Buy scheme helps first-time home-buyers and existing homeowners to buy a new-build property by providing additional financial support for the purchase of selected new-build properties up to the value of £600,000.
What is the Help to Buy: Equity Loan?
The Help to Buy: Equity Loan allows a first-time home buyer to dramatically lower the cash deposit and mortgage amount required to purchase their first home.
To qualify for a Help to Buy: Equity Loan you need to:
- Be a first-time buyer or a property homeowner looking to move
- Purchase a newly built property under £600,000
- Never sublet this home or enter a part exchange deal on your old home
- Not own any other property at the time you buy your new home with a Help to Buy: Equity Loan
If you qualify for a Help to Buy: Equity Loan, the UK Government will lend you up to 20% of the cost of an approved new home. This means that you only need a 5% deposit and to be able to obtain a mortgage that covers the remaining 75% of the property price.
For example, for a property priced at £200,000, you will only need a deposit of £10,000 and a mortgage of £150,000 as the Help to Buy: Equity Loan will provide the remaining 20% of £40,000.
The Help to Buy: Equity Loan is interest-free for five years. If you decide to sell our property, you will need to pay back the loan in full from the proceeds of your sale, or if you want to remain in your home, you will pay back your Equity Loan at the agreed interest rate.
Find out more about the Help the Buy: Equity Loan in this video or visit their Frequently Asked Questions page.
WHICH FORTY/8 DEVELOPMENTS ARE ELIGIBLE FOR THE HELP TO BUY EQUITY LOAN?
The Hallmark, Manchester
To purchase a two bedroom Hallmark apartment priced at £280,000 , using a 20% Help to Buy: Equity Loan of £56,000 ,you would need:
- 5% deposit of £14,000
- 75% mortgage of £210,000