What is the Help to Buy Scheme?
The Help to Buy: Equity Loan is a Government-funded scheme that’s helping both first time buyers and homeowners move up on the property ladder. The scheme, which will run until 2020, means you can buy your new home with just a 5% cash deposit and a 75% mortgage from a commercial lender to make up the rest.
- The Help to Buy loan is worth up to 20% of your new home, meaning you own 100% and pay just 80% of the price upfront.
- This loan is interest-free for the first 5 years, helping you manage the initial cost of purchasing your new home.
- You can repay your loan at any time, and any outstanding amount can be repaid in full when you sell your home to move up the property ladder.
- The aim is created to help you to get on the property ladder or progress to a larger home sooner with financial support.
How does it Work?
In effect, this scheme lets you own 100% of your new home and pay just 80% of the price upfront. Your minimum 5% cash deposit, with the maximum 20% offered by the government, means you only need to seek a mortgage based on the remaining 75% of the house price.
Who is Eligible?
Help to Buy: Equity Loans are available to both first-time buyers and homeowners looking to move. The new home you wish to purchase must be newly built with a maximum value of £600,000. You cannot sublet the new home and the scheme is closed to buy-to-let investors. If you’re an existing homeowner, you cannot use your old home in a part-exchange deal. At the time of purchase of your new home using a Help to Buy: Equity Loan, you must not own any other property.
Our Help to Buy Locations
Strata offer homes under the Help to Buy scheme across all our developments. You can view our developments here
, or follow the quick links below:
Leeds Hull Doncaster Wakefield Leicester The Midlands