October has kick-started with the welcome news that this summer saw the highest number of first-time buyers since August 2007[1]. This is no doubt widely down to the large amount of financial help available for those looking to get onto the property ladder, including the Help to Buy scheme. If you’re thinking of using Help to Buy to get your first property but just don’t know where to start, we’ve put together a simple guide to help you make the most of the government-backed scheme.

 

The Key Facts You Need to Know

The Help to Buy scheme is a plan put in place by the government, aimed at helping first time buyers get onto the property ladder and into their first home.  The initiative is designed to help anyone struggling to save a deposit or move up the ladder as they have limited equity. Helping to keep your mortgage payments lower, the scheme helps to boost your deposit by lending you up to 40% of the cost of a new build home in the form of an equity loan. With this, you can purchase a property with just a 5% deposit and between a 55% and 75% mortgage. The equity loan is interest free for the first five years - from year six a fee of 1.75% is payable, which will rise gradually each year.

Am I eligible?

  • To apply for the Help to Buy scheme, you must be a first-time buyer or a second stepper looking to move.
  • You must currently live in England.
  • You must not own any other home at the time you buy a property with Help to Buy.
  • Help to Buy is only valid on new build homes, with a maximum value of £600,000.
  • Applicants that work in the Armed Forces may be eligible to sub-let a home with the scheme. For more information on this, click here
  • The scheme was due to end in 2021, but the government has committed to extending this to 2023 just for first time buyers. Make sure you make the most of it before it ends!

 

How do I apply?

Do you fit the above criteria? If so, your next step is to look for a new home that offers Help to Buy! If you’re looking to buy a home in a well-connected London location, why not check out New Union Wharf, our latest development on the Isle of Dogs? With a number of two-bedroom apartments available with London Help to Buy, you can enjoy a Zone 2 location and stunning riverside views with just a 5% deposit! The marketing suite is open daily, between 10am and 5pm, where the sales team will guide you through your Help to Buy application.

 

[1] https://www.ukfinance.org.uk/data-and-research/data/mortgages/lending-trends