What is Help to Buy?
During the recent budget announcement, the Chancellor revealed a major scheme to help more people get on, or move up the property ladder, which officially started on the 1st April 2013. Named ‘Help to Buy’, it allows people to buy a new home with just a 5% deposit, plus a 20% equity loan from the Government.
The housing industry has already experienced a phenomenal uptake from house buyers and we’ve had lots of Help to Buy enquiries and reservations since it was announced.
We think the scheme is great news, as it will make the dream of home ownership a reality for lots of people who have been struggling to save large deposits. It is available to all house hunters, not just first time buyers, and is only applicable to new build properties with a maximum value of £600,000.
How does it work?
- You save a minimum deposit of 5% of the property value.
- The Government gives you an equity loan of up to 20%, which is interest-free for the first five years and can be re-paid any time within 25 years, or when you sell your house.
- You fund the remainder with a capital repayment mortgage of up to 75% of the property value from a lender.
This scheme is set to run for three years and will effectively help house buyers to top-up their deposits and qualify for better mortgage deals. Any of our properties up to a value of £600,000 can be purchased using the Help to Buy scheme.
Help to Buy is the latest scheme launched to help get people moving. There’s lots of help out there for house hunters including the FirstBuy and New Buy schemes. To find out which option is right for you, visit our website or come and speak to a member of our team at any of our sales suites across East Yorkshire and Lincolnshire.