YOU COULD MOVE INTO A NEW HOME WITH JUST A 5% DEPOSIT*
What is Help to Buy?*
Help to Buy* is a Government-backed scheme to help buyers secure a mortgage on a new build home. It means that home buyers can own 100% of a new home with only a 5% deposit. The scheme is available to all buyers, not just first-time buyers, but the property purchased through Help to Buy must be your only residence.
How does it work?
Help to Buy* offers up to a maximum of 20% of the purchase price through an equity loan funded by the Government. The remaining 80% is then made up through a 5% deposit contribution and a 75% mortgage from a bank or building society.
Here’s an example of the equity loan scheme:
Based on a £200,000 purchase price
- 5% Deposit £10,000
- 75% Mortgage £150,000
- 20% Help to Buy Equity Loan £40,000
The equity loan is available on new build properties up to a maximum value of £600,000 in England, and is interest-free for five years – it can be paid back at any time or upon the sale of your home.
Further information is available in the Help to Buy* Buyers Guide.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT
*Help to Buy is available on properties up to a maximum value of £600,000 in England. If you qualify for Help to Buy assistance and you raise a mortgage for at least 75% of the purchase price of your new home from a lender, you can borrow up to the remaining 20% of the purchase price by taking out a loan secured over your new home from the Government’s Homes England public body over a period of 25 years. A 5% deposit is required by the lender. More may be required depending upon circumstances and your lender’s criteria. Help to Buy is subject to eligibility and terms and conditions.