The Government’s Help to Buy: Equity Loan scheme is designed to offer a more affordable solution for buyers who want to purchase a newly built home.
Equity loans aren’t just for first-time buyers so, if you’re looking to move to a new property as your family grows or your circumstances change, this could be just the help you need to make your move happen.
Under the terms of the scheme, the Government will lend you up to 20% of the cost of your new home, which means you just need to raise a 5% deposit. You’ll take out a 75% mortgage to make up the total purchase sum and, for the first five years, there’ll be no fee charged on the 20% loan. The loan must be repaid after 25 years or earlier if you sell your home.
In a nutshell, this Help to Buy scheme applies to newly-built properties worth up to £600,000 and it will need to be your only property. You won’t be able to sublet your new home or take up a part-exchange deal on your old home either.
To find out more about the Government’s Help to Buy schemes, visit helptobuy.gov.uk
Here’s an illustration of how Help to Buy could help you:
|Help to Buy equity loan:||£62,000|
|Your monthly repayment:||£806.87*|
*This illustration is provided on the basis of a capital repayment mortgage over a 30-year term on a two-year fixed rate of 1.54% with a £999 arrangement fee and a free basic mortgage valuation. This is an example rate; these vary daily so this illustration does not constitute an offer. Mortgage is subject to full underwriting, affordability and credit scoring via the lender, this rate and product was valid at point of printing. The government will provide an Equity loan of up to 20% of the value of the property.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Highwood developments are the perfect place to make a new house a home and we’re making it easy for everyone to start a new life. From the time every buyer’s search for their perfect home begins to moving-in day, our Customer Care team is on hand to help you every step of the way.
Customer Care Manager, Highwood
We’re combining character, landscapes and history with great design and sustainable building to create fantastic places to live.
Sales Director, Highwood Homes
Help to Buy is offering great opportunities to people who want to make an easy, affordable move to a new home. The scheme is available until 2023 and for first time buyers and capped prices only from 2021 – our advice is to talk to an expert mortgage advice now to avoid missing out.
Mortgage and Protection Adviser, Mortgage Advice Bureau
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