Help To Buy Mortgages in North Devon
The Help to Buy Equity Loan scheme ended on 31st March 2023 for purchases. Below is an overview of how it worked. If you have an existing mortgage with Help To Buy and need to remortgage, we can assist.
The Government’s Help to Buy Equity Loan scheme is designed to help first-time buyers purchase a new home by helping them afford a deposit of more than 5%. Our knowledge of the property market means that we are ideally placed to provide advice and guidance on these and other schemes available to help first-time buyers purchase their first home.
As a first-time buyer looking to purchase a new build property but unable to afford a deposit larger than 5%, you may be eligible for the Help to Buy Equity Loan scheme. On the condition that you contribute a deposit of at least 5%, the Help to Buy Equity Loan scheme will lend 20% of the purchase price, giving you a minimum 25% deposit. This part of the loan is interest-free for the first 5 years.
You will then be able to arrange a mortgage for the remaining 75% of the property. The loan to value (LTV) of 75% gives you access to more competitive interest rates than with a lower deposit. On reaching the sixth year of your loan, you will start paying interest on the Help to Buy Equity Loan scheme, or more commonly, you can remortgage and buy out the 20% share for yourselves, depending on affordability and the value of your home.
Eligibility for the Help to Buy Equity Loan scheme is achieved by meeting the following conditions:
- You must be able to provide a minimum 5% deposit on the property.
- The property you are purchasing must be a new build
- The maximum value of the property you intend to purchase cannot exceed £600,000.
- The property bought must be the only property you own.
At Aspire Financial Services, we have the experience and expertise to guide you through the Help to Buy Equity Loan scheme process. If you are considering using this scheme to purchase your first home, get in touch. Book a free 30-minute consultation now.
Book a free 30 minute consultation now.