Help To Buy
What is Help to Buy?
Buying a new home with the Government-backed Help to Buy scheme means you’ll only need a 5% deposit, with the Government providing an equity loan of 20% of the value of your chosen new home. That means you can access a 75% mortgage, opening the door to more competitive lending rates, lower monthly mortgage payments and a dream move into a brand new KMRE Home.
Here’s an example of the equity loan scheme:
- Based on a £140,000 purchase price
- 5% Deposit £7,000
- 20% Help to Buy Equity Loan £28,000
- 75% Mortgage £105,000
Thanks to Help to Buy you can borrow up to a maximum of 20% of the purchase price through an equity loan funded by the English Government, this is completely interest free for the first 5 years. The remaining 80% is then made up through a 5% deposit contribution and a 75% mortgage from a bank or building society.
Who can use Help to Buy?
Whether your a first time buyer looking to buy your first home or an existing home owner looking to take your next step on the property ladder, the Help to Buy scheme could be your ideal solution. However, the home you are looking to purchase must be your only residence. Help to Buy is not available to assist buy-to-let investors or those who will own any other property after they complete.
What can I afford?
Use our handy calculator to see how the Help to Buy scheme could work for you.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT
Help to Buy is available on selected properties up to a maximum value of £600,000 in England. If you qualify for Help to Buy assistance and you raise a mortgage for at least 75% of the purchase price of your new home from a lender, you can borrow up to the remaining 20% of the purchase price by taking out a loan secured over your new home from the Government’s Homes & Community Agency (HCA) over a period of 25 years. A 5% deposit is required by the lender. More may be required depending upon circumstances and your lender’s criteria. Help to Buy is subject to eligibility and terms and conditions.
For more information visit the Help to Buy website at – www.helptobuy.gov.uk