Under the terms of the Help to Buy scheme, the Government will lend you up to 20% of the cost of your new home, which means you just need to raise a 5% deposit. You’ll take out a 75% mortgage to make up the total purchase sum and, for the first five years, there’ll be no fee charged on the 20% loan. The loan must be repaid after 25 years or earlier if you sell your home.
The Help to Buy scheme applies to first-time buyers of a newly-built property, which must be your only property and cannot be sublet.
Here’s an illustration of how Help to Buy could help you purchase a two bedroom home at the Park:
|Help to Buy equity loan:||£60,000|
|Your monthly repayment:||£808.22*|
*The illustration above is provided on the basis of capital interest mortgage over a 30 year term at 1.79% two year fixed rate £749 arrangement fee, £35 CHAPS fee, £80 deeds release fee, £126 legal fee (to be confirmed by your solicitor) and free basic mortgage valuation. This is an example rate, which varies daily so this illustration does not constitute an offer. Mortgage is subject to full underwriting, affordability and credit scoring via the lender, this rate and product was valid at point of printing. The government will provide an Equity loan of up to 20% of the value of the property or with the Help to Buy mortgage guarantee scheme, you could get a 95% mortgage with a 5% deposit.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
If you want to know more about the Help to Buy scheme, see more financial illustrations and discover an easier way to get your foot on the housing ladder, download our brochure.