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faqs
Finance FAQs
One of the most complicated parts of the home buying process is the finances. From mortages to part exchange offers, from the help to buy scheme to stamp duty rates and increments: there's just so much you need to know. That's why our finance FAQs have been written to help cut through some of that financial information, to give you clear, concise answers to your questions. 
Our finance FAQs have been written to help cut through some of that financial information, to give you clear, consice answers to your questions. 
Finance FAQs
What is the Help to Buy scheme?

Help to Buy is a government-funded scheme that allows you to buy a new build home with 5% cash deposit and a 75% mortgage from a commercial lender. The remaining 20% is borrowed from the government and is interest free for the first five years.

Can I access an interest-only mortgage with Help to Buy?
No, you can only use the Help to Buy scheme with a repayment mortgage. Interest-only mortgages are not available to those using the equity loa
Is part exchange available with Help to Buy purchases?
Part Exchange is not available with the Help to Buy scheme, however Strata's Assisted Selling Plan can be used, meaning we will help you to get the best possible price from the sale of your current home, with our expert team helping you to manage the selling process.
Does Help to Buy apply to off-plan new build homes?
Yes, you can use Help to Buy when buying an off-plan new build home. Similar to other mortgages, the mortgage offer for a Help to Buy mortgage will usually last up to six months.
Does stamp duty apply on Help to Buy purchases?
If you are a first time buyer and your new home is worth less than £300,000, then Stamp Duty will not be payable. Otherwise, Stamp Duty is payable on the purchase of any UK property.
What restrictions are there on the properties that I can purchase using Help to Buy?
Properties bought using the Help to Buy scheme must be new build and cost £600,000 or less. The Help to Buy property must be the only home owned by the homeowner, and cannot be used as a buy-to-let property.
Can I sublet a Help to Buy home?
You cannot use Help to Buy to purchase a home to sublet. It must be the only home owned by the homeowner, and be bought to live in.
Can I own other homes and buy a Help to Buy home?
You can only buy a Help to Buy home if it is the only home owned by you. If you have a home to sell, it must be shown to be sold before you can own the Help to Buy property.
Can I use cash from additional public sector bodies along Help to Buy?
Yes, providing that the funding is considered compatible with the scheme.
Can I make alterations to the property if purchased using Help to Buy?
Not without permission from the Post Sales Help to Buy agent. Repaying the equity loan in full is advised before making improvements, as this frees up more funds for the Housing and Communities Agency to help other aspiring buyers.
How does Help to Buy work?
Help to Buy is a government-funded scheme that allows you to buy a new build home with 5% cash deposit and a 75% mortgage from a commercial lender. The remaining 20% is borrowed from the government and is interest free for the first five years.
After the first five years of Help to Buy, how is equity loan collected?
You can arrange to pay the equity loan back in monthly or annual instalments. This is paid to the Post Sales Help to Buy Agent, via direct debit. You receive an annual statement with a repayment schedule, receipt of payments made and remaining balance to date. 
 
What is a deposit calculator?

Our deposit calculator can give you an idea of how much deposit you will need to save to buy your new home, as well as how much your mortgage repayments will be, based on various factors such as the term of your loan and its interest rate.

What is a mortgage in principle?

A mortgage in principle is when a lender will say that, if all your financial and personal information is accurate, they would be willing to lend you the money you need to buy a new home. A mortgage in principle can usually be drawn up in 24 hours and will generally last between three and six months. You will need to check with your lender exactly how long yours will be valid for.

Do I need a mortgage in principle?

Not every house purchase requires a mortgage in principle, but it can be reassuring to have one, especially if your new home might not be completed for several months. A formal mortgage offer might have expired by the time your home is ready.

Can I increase my mortgage or take out an additional loan?
You must have any further loans or mortgage advances approved by the Post Sales Help to Buy Agent.
How does Part Exchange work?
Strata will buy your existing home, freeing you to buy your new one without a chain.

More information to help you finance your home

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