Help to Buy
The Help to Buy scheme is an equity loan provided by the Government. They lend you up to 40% of the cost of your new build home, so you will need a minimum 5% deposit and a 55% mortgage to make up the rest.
For this scheme, you must have a mortgage, which will be a first charge, as the equity loan can only be a second charge. The equity loan is for a maximum of 25 years or before if the property is sold or the mortgage is redeemed, whichever term is the shorter of the two.
You will not be charged any interest on the 40% loan for the first five years of owning your home. However, a management fee of £1 a month will be applicable from the date of purchase. From year six, a fee of 1.75% is payable on the equity loan, which rises annually by RPI (Retail Price Index) inflation plus 1%.
How do we help?
We are able to assess your eligibility for the scheme and confirm what price property you will be able to purchase. We work very closely with the Help to Buy agencies, so we are experts at helping customers through the application process.
Different limits may apply to the scheme in London, Scotland and Wales – Please contact us for details.
As well as helping you with your purchase, we help with remortgaging when your rate expires and also when you are ready to repay the government Help to Buy loan providing advice and support during this process.