An equity loan funded by the Government through the Homes & Communities Agency

Key Facts:

  • Help to Buy loans are subject to the Government's specific terms, conditions & qualifying criteria
  • Loans are available to those selling a home to move up the property ladder, as well as FTB's
  • The property to be purchased must be your only residence
  • The scheme applies to new build properties in England only, outside of London
  • A maximum purchase price of £600,000 is allowed 
  • The scheme will run until 31 March 2016 or earlier if the funding is taken up
  • Potential buyers should contact their local Homebuy Agent 
  • You should also read the Help to Buy Buyer's Guide  www.homesandcommunities.co.uk/sites/defual/files/our-work/help_to_buy_guide_sept_2013.pdf
  • A minimum deposit would be required, depending on your lender's requirements, typically 5%
  • The remaining 80% will need to be funded by way of a mortgage and own funds
  • If eligible, the Government could lend up to a max. of 20% (min. 10%) of the purchase price
  • The equity loan has a term of 25 years, however this can be repaid at any time
  • Or it can be repaid on the eventual sale of the property
  • The loan is interest free until Year 6 when interest will be levied at 1.75% per annum.
  • From Year 7 onwards this rate will be uplifted by the Retail Price Index (RPI) plus 1% per year
  • Your mortgage will be secured as a first charge with the equity loan as a second charge
  • Reserve a new home off plan, but must be no more than 10 months away from completion
  • Help to Buy can not be used in conjunction with part exchange