Help to Buy is a government scheme which helps you buy your own home with just 5% deposit.
The government then provides a loan (called an equity loan) of up to 40% for London properties or 20% outside London (the limit is 15% in Scotland). You then borrow the rest of the purchase amount as a mortgage from one of a range of lenders who are involved in the scheme. The government loan means you borrow less from the mortgage provider, giving you a wider range of mortgage rates to choose from because your loan-to-value ratio is lower.
Our dedicated Help to Buy expert Lee can see if you’re eligible and guide you through the entire purchase from start to finish. Get in touch today and see how we can assist you with your move.
Who is eligible?
If you’re a first-time buyer in England, you can apply for a Help to Buy: Equity Loan.
You must buy your home from a homebuilder registered for Help to Buy: Equity Loan.
How does it work?
You would need to put in a deposit of 5% of the purchase price. The government then provides a loan (called an equity loan) of up to 40% for qualifying London properties with a purchase price up to £600,000. Outside of London the following price caps apply:
Help to Buy: Equity Loan price caps – April 2021 to March 2023
Maximum property by region:
North East £186,100
North West £224,400
Yorkshire and the Humber £228,100
East Midlands £261,900
West Midlands £255,600
East of England £407,400
London £600,000
South East £437,600
South West £349,000
You then borrow the remainder of the funds required via a mortgage, which can be taken from one of a selection of lenders who are involved in the scheme. The government loan means you borrow less from the mortgage provider, giving you a wider range of mortgage rates to choose from because your loan-to-value ratio is lower.
If the home in the example above sold for £350,000, you would get £210,000 (60%, from your mortgage and the cash deposit) and you would pay back £140,000 on the loan (40%). You would need to pay off your mortgage with your share of the money.
You won’t be charged loan fees on the 40% loan for the first five years of owning your home.
Which banks offer Help to Buy mortgages?
Accord, Aldermore, Barclays, Bank Of Ireland, Bluestone, Cambridge, Darlington, Halifax, Leeds, Melton Mowbray, Nationwide, NatWest, Newbury, Newcastle, Principality, Precise, Royal Bank of Scotland, Santander, Skipton, Teachers, TSB, Virgin, West Brom.
Where can I find properties?
The Acorn Groups dedicated New Homes division have hundreds of brand new homes for sale across South London and Kent on Help to Buy - visit acorngroup.co.uk/newhomes for more information.
How to apply?
Our dedicated Help to Buy expert Lee can see if you’re eligible and he will guide you through the entire purchase from start to finish. Please get in touch today and see how he can assist with your move.