Help to Buy Scheme
If you are a first-time buyer looking to get a foot on the property ladder with a newly built home, you may also be looking for some financial help to make that all-important first step. The government’s new Help to Buy: Equity Loan scheme 2021-2023, launched in December 2020, could make the dream of buying your own home become a reality and help you get on the property ladder.
Help to Buy: Equity Loan 2021-2023 is a loan from the government that first-time buyers can put towards the cost of buying a newly built home. Under this scheme, the government lends homebuyers up to 20% (40% in London) of the cost of a newly built home. In the South East, the amount you can spend on your home is capped at £437,600 (£600,000 in London) to be eligible. You need to fund at least 80% (60% in London) of the sale price with a mortgage and at least a 5% deposit. The equity loan is interest-free for the first five years and you will have to repay the equity loan when you sell the home, pay off your mortgage or reach the end of your loan term. There is a comprehensive government guide to the scheme here and an independent financial adviser and a solicitor can help you to decide if Help to Buy is right for you.
Discover if you are eligible for this scheme by contacting The Frost Partnership. We can also discuss your property search requirements or we can put you in touch with our trusted independent mortgage advisors to see what type of mortgage financing would work best for you.
Your home may be repossessed if you do not keep up repayments on your mortgage, equity loan or other loans secured against it.