It’s a Government-backed scheme to help people buy a new home with just a 5% deposit, and a loan of up to 20% of the purchase price. The loan is interest free for the first five years. (Different rates apply to new homes in London).
It’s for both first time buyers, and existing buyers who are buying their main residence. The home you are purchasing will need to be legal completed by 31st March 2021.
In April 2021 the scheme is changing and will be just for first time buyers, until March 2023, with regional price caps.
Anyone buying their first home or their main residence, it’s not available for investors or people buying a second home.
Up to 20% of the value of the new home, providing the value isn’t over a maximum of £600,000.
Not initially, but you will be paying £1.00 per month for a management fee until the loan is repaid. You will start paying interest on the loan in year 6 which is currently 1.75% in year 6 then 1.75% plus any increase in the Retail Price Index (RPI) plus 1% in each of the flowing years.
If you are borrowing the maximum 20% of the purchase price on a Help to Buy Equity Loan, you’ll also need to have a 5% deposit, this will leave you 75% to cover, with a mortgage or funds.
You’ll need to pay a 5% deposit when you exchange Contracts.
The Equity Loan must be repaid after 25 years or earlier if you sell your home.
Yes you can pay it all or part of it back at any time, with a minimum of 10% of the prevailing market value of your home.
For more information visit https://www.helptobuy.gov.uk/equity-loan/equity-loans/
The scheme is run by Government-appointed agents. In our region this is currently the Agent for the South: Telephone 0800 456 11 88. Your Financial Advisor will be able to help you to complete the Application Form, take a look at our Buyers Guide – Financial, for more information.
The Help to Buy Equity Loan Scheme
The Government-backed Help to Buy Equity Loan Scheme is for anyone buying a home, but it must be your main home. We’ve put together some handy questions and answers to give you an overview.
Westerhill Homes Part Exchange
We are keen to help you move and appreciate that selling your own home is stressful. Our Part Exchange Scheme take all the stress away from you, plus you’ll save on estate agents fees. Here’s some handy questions and answers to explain more about how our part exchange scheme works.