More and more people are looking to the Help to Buy scheme for support to begin their home ownership journey.
Read up about the scheme but still wondering if Help to Buy is right for you? We’ve put together top tips on how the government backed scheme can help you purchase a brand new home!
- Figure out your Finances. Help to Buy allows buyers to purchase a property using a deposit of just 5% of the property’s value, and a 75% mortgage, anywhere in England outside of London. The remaining 20% of the purchase price is given as an equity loan by the government, which is interest free for the first five years. From year six, interest of 1.75% is payable, and will rise each year by CPI inflation plus 2%. If you are struggling to save for a deposit and plan on using Help to Buy, you must make sure you are in a good position to pay a 5% deposit, the mortgage and the equity loan back within a set time period.
- Live in London for Less. Looking to settle down in the capital? To reflect house prices in London, the London Help to Buy scheme offers a significantly higher percentage equity loan for buyers in the city. For properties in London and the surrounding London boroughs, the government offers an equity loan of up to 40% of the property value. Find out more about the London Help to Buy scheme and search for available L&Q homes.
- Research, research, research. When you’ve decided that Help to Buy is the route to take, the next step is to do your research. Research the area you’re keen on living in, and find a home offering Help to Buy. The scheme is only available on new build properties in England, and they must have a value of £600,000 or less. Browse all Help to Buy homes available with L&Q.
- Make the most of it! The Help to Buy scheme was originally due to end in 2021, however the government has decided to extend it to 2023 for first time buyers only. If you’re an existing homebuyer, the scheme is only available until 2021, so be sure to snap it up while you still can! Find out all you need to know about the Help to Buy scheme 2021 or visit the Help to Buy website for more information here.