How does Help to Buy work?
I’m a first time buyer, what do the new changes mean for me?
As a first time buyer, you’ll be able to use the Help to Buy scheme but you’ll have a smaller selection of homes to choose from due to the regional price caps, as up until the end of this year you can buy any of our new homes up to the value of £600,000.
We want to buy a bigger home using the Help to Buy scheme, can I do this?
Yes, provided your new home is built by December 2020 and you legally complete by the 31st March 2021. You won’t be able to utilise Help to Buy after the changes in 2021. With only 5% deposit required it doesn’t matter if you have limited equity in your current home.
I have a home to sell, can I still use Help to Buy?
Yes you can, if you reserve by 15th December 2020 to qualify for the current scheme. You can use our Smart Move scheme with Help to Buy. We’ll take the hassle out of selling and do it for you. You can then use Help to Buy to purchase your new dream home. You won’t be able to utilise Help to Buy after the changes in 2021.
How does the equity loan work?
Although your mortgage repayments will include interest, you won’t be asked to pay any interest on your 20% equity loan during the first five years. You only need to repay your equity loan within 25 years or when you sell the house, but you can choose to pay it back before then.
Is a 95% mortgage better?
Not necessarily; with the government adding the 20% equity loan to your 5% deposit, you actually only need a mortgage for 75% and you still own 100% of your home. Essentially, Help to Buy allows you to benefit from a slightly lower mortgage, which can reduce your monthly payments.
How do I apply for Help to Buy?
We work with a number of independent advisors who specialise in new home sales who can help. This is a free service.
Can I use Help to Buy to buy a second hand home?
Help to Buy is a scheme only for the purchase of a new home
Can I buy more than one home before the scheme ends?
The home you’re buying must be your only property. You won’t be eligible if you’llown another property after completion.
Can I buy a home using the scheme to sublet?
You won’t be able to sublet the home you’re buying, negating buy to let investing.