The Government has created the Help to Buy scheme to help you take steps to buy your own home. Whether you want to get onto the housing ladder or move up it, Help to Buy makes it possible to buy a new-build or existing home priced up to £600,000 with as little as a 5% deposit.
Here at Ashwood Homes we offer advice, guidance and support following the Help to Buy Scheme.
With a Help to Buy: equity loan the Government lends you up to 20% of the cost of your new-build 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 20% loan for the first five years of owning your home.
Example: for a home with a £200,000 price tag
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.
Help to Buy is changing from 1st April 2021, the scheme will only be eligible for First time buyers and regional price caps will apply. Speak to a qualified Financial Advisor to find out more.
Information taken from www.helptobuy.gov.uk