The Help to Buy Equity Loan Scheme allows you to purchase a new home with just a 5% deposit and is available for both first time buyers and existing home owners.
The Government (HCA) will lend you up to 20% of the value of your property through an equity loan, which can be repaid at any time or on the sale of your home. The equity loan is interest free for the first 5 years, with only a £1 monthly management fee payable.
You then need to secure up to a 75% mortgage from a bank or building society to cover the remaining amount.
Available exclusively on new build homes up to a maximum purchase price of £600,000 in England.
The Equity Loan Scheme is available to first-time buyers and existing home owners. The property purchased must be your only residence. Help to Buy is not available to assist buy-to-let investors or those who will own any property other than their Help to Buy property after completing their purchase. You cannot rent out your existing home and buy a second home through Help to Buy.
The terms of the scheme vary between London and the rest of England, so take a look at the Help to Buy Scheme in your area for more details – details can be found below.
You only need a minimum 5% deposit.
The government will lend you up to 20% of the value of your property through an equity loan, which can be repaid at any time or on the sale of your home.
So you will only need to secure up to a 75% mortgage from a bank or building society.
Maximum home purchase of £600,000.