As a first-time buyer, searching for a newly built home, you may need a financial boost. With the government’s Help to Buy: Equity Loan scheme, buying your own home could become a dream come true. So can Help to Buy: Equity Loan scheme help you buy your first home?
This new scheme will enable first-time buyers to borrow a minimum of 5% and up to 20% (or up to 40% in London) of the market value of a newly built home. The amount you can spend on the home depends on where in England you buy it.
Who is eligible?
- To take advantage of the scheme, you must be a first-time buyer.
- You must not own a home or residential land now or in the past – in either the UK or abroad.
- You should not have had any form of sharia mortgage.
How does it work?
When purchasing a home with the Equity Loan scheme you will not pay interest on the equity loan for the first 5 years. You will pay interest in year 6, this will be on the equity loan amount you borrowed.
At the exchange of contracts, you will be required to pay a deposit, this is 5% of the purchase price.
It is worth noting, you can repay all or part of your equity loan at any time. A part-payment must be at least 10% of what your home is worth at the time of repayment. Your Mortgage Advisor will guide you through this process and whether it is right for you to pay it off early.
Is the scheme right for me?
If you already have a large deposit and can get a mortgage without the use of the Help to Buy scheme, you may not need to benefit from the financial boost.
If you are unsure, contact us using the form below. We are here to help and answer any questions you may have and remember we don’t charge you a broker fee and so .
How to apply:
First-time buyers who are eligible for Help to Buy: Equity Loan (2021-2023) can apply now with a homebuilder registered for the scheme.
Apply with a Help to Buy agent, in England, within the area where you would like to live. Find your local Help to Buy agent here.
If you are thinking this is the route for you – talk to one of the Yes Mortgage Advisors to talk through what you need to know and
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