What is Help to Buy?
Help to Buy is an equity loan scheme to help you buy a new home. If you have a 5% deposit and can cover 75% of the value of the home with a mortgage (or 55% in London), the Government will lend you up to the remaining 20% (40% in London) in the form of an equity loan.
How is London Help to Buy different?
If you are looking to buy a home in London with Help to Buy, you will still need a minimum 5% deposit based on the full market value of the home, however you may only need to raise a mortgage for 55% of the value, with the remaining 40% being the Help to Buy equity loan.
Outside of London, you will need a 5% deposit, 75% mortgage and receive up to a 20% equity loan.
What type and size of home can I buy?
The home must be a new property and the value cannot exceed £600,000, but with regards to location, number of bedrooms or style, you’re free to pick! Help to Buy is available on any home that meets the above criteria and the developer selling the home has funding available to offer the equity loan, rather than on specific plots like shared ownership.
Do I have to buy a new build home?
Yes, Help to Buy is only available on new build properties and developments.Read more