Help to Buy
The government introduced a number of different Help to Buy schemes, all aimed at individuals who were struggling to get on the property ladder.
Help to Buy: Shared equity
The government will lend up to 20% of the property value but there is a maximum LTV of 75%. The maximum property value is £600k.
The government provides an equity loan allowing you access to lower interest rates than you could get for normal products with the same deposit.
You will need to contribute a minimum of 5%.
Builders incentives of up to a maximum of 5% of the property value will be accepted.
Help to Buy: London
You will still need to contribute a 5% (minimum) deposit and you will need to have a mortgage of at least 25% of the property value.
Again there is a maximum LTV of 75% and the maximum property value is £600k.
Help to Buy: Shared Ownership
Shared Ownership is a great way of getting onto the property ladder, as the deposit required will depend on the share you buy meaning it can be less than a typical deposit.
Although not for everyone, sometimes it is better to own 50% of your home while working towards owning the whole thing.
You basically increase your share of the ownership as and when you can afford to do so, until your own your property outright.
When does Help to Buy end?
Interest in taking advantage of any of the Help to Buy schemes to purchase your new home. Please get in touch with us to talk to one of our advisors who will be happy to go into more detail.