If the home in the example above sold for £210,000, you’d get £168,000 (80%, from your mortgage and the cash deposit) and you’d pay back £42,000 on the loan (20%). You’d need to pay off your mortgage with your share of the money. For more information (including advice on fees and paying back your loan) please download the Help to Buy Buyers Guide from the Help to Buy website. www.helptobuymidlands.co.uk
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 equity loan.
The Governments new Help to Buy ISA
How does it work?
If you are saving to buy your first home, save money into a Help to Buy: ISA and the government will boost your savings by 25%. So, for every £200 you save, receive a government bonus of £50. The maximum government bonus you can receive is £3,000.
The Help to Buy ISA will be available from a range of banks and building societies.
The accounts are available to each first time buyer, not each household. This means that if you are planning to buy with your partner, for example, you could receive a government bonus of up to £6,000 towards your first home.
Save: Put away up to £200 a month into your Help to Buy: ISA. To kickstart your account, in your first month, you can deposit a lump sum of up to £1,200.
The minimum government bonus is £400, meaning that you need to have saved at least £1,600 into your Help to Buy: ISA before you can claim your bonus. The maximum government bonus you can receive is £3,000 – to receive that, you need to have saved £12,000.
Receive bonus: When you are in the process of buying your first home, your solicitor or conveyancer will apply for your government bonus. Please check whether your solicitor or conveyancer is participating the Help to Buy: ISA scheme, as they will need to register with the scheme before they can apply for your bonus.
Information taken from www.helptobuy.gov.uk