Help to Buy Equity Loan -
Heard of Help to Buy but not sure what all the fuss is about? Here are the fact about the scheme including how to apply and where to search for properties.
So how does it work? This scheme offers a 10%-20% equity loan funded by the Government through the Homes and Communities Agency (HCA) on new build properties. The equity loan is interest free for the first 5 years, after this, a fee of 1.75% rising annually by the increase (if any) in the Retail Price Index (RPI) plus 1% . The maximum purchase price of a qualifying property £600,000. There is also no limit on the number of bedrooms. The maximum Developer reservation fee is £500 which is fully refundable if the buyer is not accepted on the scheme. The builder may offer incentives to the value of no more than 5% of the purchase price
I’m not a first time buyer, am I still eligible? Yes! This scheme is now available to all buyers rather than just first time buyers. You must be able to obtain a capital repayment mortgage (advised 25 year term) with a qualifying lender. You must have access to a minimum 5% deposit (if one is required by your first charge lender) and be able to cover your legal fees.
Where are available properties? There is a wide range of properties available through Help to Buy. You can search for available properties on our website via the property search pages.
Published on Aug 30, 2013