What is Help to Buy*?
Help to Buy* and Help to Buy (Scotland)** are new Government-backed schemes to help buyers secure a mortgage on a new build home. It means that home buyers can own a home with only a 5% deposit, and gain help with funding up to 20% of the purchase price. And remember that these initiatives are available to all buyers, not just first time buyers.
How does it work?
With Help to Buy*, you’ll receive an equity loan from the Homes and Communities Agency (HCA) to help you secure a mortgage. With Help to Buy (Scotland)**, funding will be provided by the Scottish Government. The schemes have been designed to assist those who would be able to sustain a mortgage, but who cannot currently acquire one due to large deposit requirements.
Here's an example:
Pay from only £104,000 now
Based on a £130,000 purchase price
- 5% Deposit £6,500
- 75% Mortgage £97,500
- 20% Help to Buy Equity Loan £26,000
Help to Buy* and Help to Buy (Scotland)** offer up to a maximum of 20% of the purchase price through an equity loan funded by the English and Scottish Governments. The remaining 80% is then made up through a 5% deposit contribution and a 75% mortgage from a bank or building society. So Help to Buy* means precisely that.
The equity loan is available on new build properties up to a maximum value of £600,000 in England, and £400,000 in Scotland. Further information is available in the Help to Buy* Buyers Guide and the Help to Buy (Scotland)** Information Leaflet.