Whether you’re looking to buy your first home, second home, need more space for your family, or are relocating for work, chances are you’ve heard about Help to Buy.
There are currently two Help to Buy schemes: Equity Loan and Mortgage Guarantee. Both require a 5% deposit and are available to first-time buyers and existing homeowners. Beyond that, the schemes are very different.
Help to Buy: Equity Loan
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No stamp duty for first time buyers up to £300,000
Then 5% from £300,000-£500,000
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Available on new-build homes up to £600,000 in England, £400,000 in Scotland and £300,000 in Wales.
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The government will lend you up to 20% of the property value through an equity loan which can be repaid at any time during the loan term or on the sale of your home
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In England and Wales, you won’t be charged any loan fees for the first five years of owning your home. In Scotland, there are no loan fees to be paid.
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You’ll only need to secure up to a 75% mortgage from a bank or building society.
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There is a range of competitive mortgage rates available with this scheme.
