Help to Buy

You could only need a 5% deposit to 100% own a new home


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 a home with only a 5% deposit. And remember that this initiative is available to all buyers, not just first time buyers. The property purchased through Help to Buy must be your only residence.

With Help to Buy: Equity Loan*, you’ll receive funding from Homes England to help you secure a mortgage.

Here's an example of the equity loan scheme:

  • 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* 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.

The equity loan is available on new build properties up to a maximum value of £600,000 in England. Further information is available in the Help to Buy* Buyers Guide.

 

Help to Buy (Scotland) Affordable New Build**

The Scottish Government have now announced details regarding the next phase of the Help to Buy (Scotland) scheme.

Help to Buy (Scotland) Affordable New Build** is a Scottish Government-backed scheme designed to help buyers secure a mortgage on a new build home. It means that home buyers in Scotland could own a home with as little as a 5% deposit. This initiative is available to all buyers, not just first time buyers.

With Help to Buy (Scotland) Affordable New Build**, the Scottish Government will contribute a maximum of 15% equity stake. The remaining 85% is made up through a 5% deposit contribution and an 80% mortgage from a bank or building society.

The assistance is available on new build properties up to a maximum value of £200,000 in Scotland, for completions taking place from 1st April 2017 up to 31st March 2019. The maximum value will now stay the same until 31st March 2019:

Scheme Year              Maximum Value

2017/18 & 2018/19     £200,000


Here's an example of the Help to Buy (Scotland) Affordable New Build** scheme:

  • Based on a £200,000 purchase price
  • 5% Deposit £10,000
  • 80% Mortgage £160,000
  • 15% Help to Buy Equity Stake £30,000

 

Help to Buy ISA

If you're a first time buyer and saving for a deposit on an eligible home, from 1 December 2015 you could qualify for the new Help to Buy ISA scheme, and the Government will boost your savings by 25%. Find out more about how the scheme works by reading the Help to Buy ISA Factsheet.


Help to Buy

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. 

**Help to Buy (Scotland) Affordable New Build scheme is available on properties up to a maximum value of £200,000, that complete during the period 1st April 2017 to 31st March 2019. If you qualify for assistance and you raise a mortgage for at least 80% of the purchase price of your new home from a lender, you can borrow up to the remaining 15% of the purchase price by taking out a loan secured over your new home from the Scottish Government. A 5% deposit is required by the lender. More may be required depending upon circumstances and your lender's criteria. Help to Buy (Scotland) Affordable New Build assistance is subject to eligibility and terms and conditions.  

The property purchased must be your only residence. Help to Buy is not available to assist buy-to-let investors or those who will own any property other than their Help to Buy property after completing their purchase.You cannot rent out your existing home and buy a second home through Help to Buy.

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