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Everything you need to know about the Help to Buy scheme

Help to Buy is a government scheme designed to help people to get on the property ladder without a large deposit. Here is everything you need to know about the options that are available to you.

What is Help to Buy?

The government’s Help to Buy scheme consists in three main parts: Help to Buy equity loans, London Help to Buy and Help to Buy Isas. The scheme has been created to support people who are struggling to move up the property ladder.

Help to Buy equity loan

Help to Buy equity loans are one of the most popular ways for buyers to get to home ownership. They are only available to people who want to buy a new-build property. To get the Help to Buy equity loan you will need to put down a deposit of at least 5%. The government will lend you up to 20% of the house’s value as an equity loan. You will then have to take out a mortgage on the rest of the property’s value.

Who qualifies?

  • It is open to first-time buyers as well as homeowners looking to move
  • The property you want to purchase must be newly built
  • The property must not cost more than £600,000

London Help to Buy

The London Help to Buy scheme is very similar to the Help to Buy equity loans, except that buyers in London can borrow up to 40% of the property price from the government rather than 20% in the Help to Buy Equity loan.

Who qualifies?

  • It is open to first-time buyers as well as homeowners looking to move
  • You need a minimum 5% deposit
  • The property must be your only residence (e.g. you cannot rent the property)
  • You need to be eligible for a mortgage on the part of the property that is not funded by the government

Help to Buy Isa

Help to Buy Isas are specifically designed to help first time buyers save towards their first property purchase. For every £200 contributed, the government will add an extra £50 towards buying your first property, up to a maximum of £3,000. You can use Help to Buy Isa savings to purchase a property worth up to £250,000 or £450,000 if you’re buying a property in London.

Who qualifies?

  • It is open to first-time buyers only
  • You need to have a purchase price of up to £250,000 (or up to £450,000 in London)
  • The home must be your only residence (e.g. you cannot rent the property)
  • You need to be eligible for a mortgage on the part of the property that is not funded by the government

 

Are you looking to buy a property? We’ve just taken on some stunning properties in Crownage Court and Elephant Park which are supported by the Help to Buy scheme. Call us today on 020 7078 0214, or email info@kh-estates.com and one of our team will be in touch.