If you're looking for a more affordable way to buy your home, then the government's Help to Buy schemes could benefit you.
With a Help to Buy: Equity Loan, you could buy a brand-new house sooner than you think.
The scheme is available on selected new build properties for both first time buyers and home movers.
When you sell your property, or choose to repay some or all of the equity loan, the amount you have to pay back will be based on the market value of your property at that time.
You can apply for a Help to Buy: Equity Loan if you:
The new Help to Buy: Equity Loan scheme was launched on 1 April 2021. It is for first-time buyers and includes regional property price limits to ensure the scheme reaches people who need it most.
The new scheme will run until March 2023. As with the previous scheme, the government will lend homebuyers up to 20% of the cost of a newly built home, and up to 40% in London.
The previous Help to Buy: Equity Loan scheme ran until March 2021.
Repayment mortgages are the only option with this scheme.
The maximum purchase price is £600,000 for properties in England and £200,000 for properties in Scotland.
You don’t have to pay borrowing fees or interest on the Equity Loan for the first 5 years after buying your home, although you can start repaying the loan whenever you want to.
After 5 years, there will be an interest fee of 1.75% of the amount of your Equity Loan at the time you took it out, which will rise each year after that by the increase in the Retail Price Index.