Help To Buy Explained
Help to Buy equity loans (new homes) Help to Buy equity loans are open to both first-time buyers and home movers on new-build homes worth up to £600,000. You won’t be able to sub-let your home if you use this scheme.
How it works With a Help to Buy equity loan:
- You’ll need to contribute at least 5% of the property price as a deposit
- The government will give you a loan for up to 20% of the price
- You’ll need a mortgage of up to 75% to cover the rest
- Help to buy charges £1 per month to be part of the scheme
- When you pay back the loan, you pay 20% of the current value of the property (whether it increases or decreases)
To find out more, watch this simple video or ask to speak to one of our Help to Buy advisers.
Equity Loan Fees to be changed to How Help To Buy Works
You won’t be charged loan interest for the first 5 years of owning your home. In the 6th year, you’ll be charged an interest of 1.75% of the loan’s value. After this, the fee will increase every year. The increase is worked out by using the Retail Price Index plus 1%. Your Help to Buy agent will contact you before the fees start, to set up monthly payments with your bank. You will also be sent a statement about your loan each year. Interest doesn’t count towards paying back the equity loan.
To find out more about Help to Buy, click here to download our Help to Buy brochure.
We understand that applying for a mortgage can be daunting. So we’re here to hold your hand throughout the whole process. Our mortgage quotation systems ensure you are put in touch not only with the best possible rates, but with lenders who are prepared to lend to you personally. It means if one lender rejects your application, we have access to many others more suited to your case.
As well as the mortgage, there are lots of other things to sort out; building insurance, solicitors and valuers. If you’ve not done it before or for a long while, it can be scary, confusing and not to mention time-consuming.
Perhaps buying your own home or moving on has been something you’ve been trying to achieve for a long time. With endless saving and sacrifices to scrape together the deposit, the Government keep giving you a helping hand; we want to support you too, and see you secure your new home as soon as possible, without any unnecessary worry.
At Premier Financial Group, you’ll be given a dedicated, friendly mortgage adviser. Someone you can pick up the phone to and talk to at any time.
They will deal directly with all other parties on your behalf and make sure you get the best mortgage deal available.
*Our fee for handling your Help to Buy purchase is £449. That’s it.
If you’re dreaming of buying, now is the time to take advantage of Help to Buy.
We’d love to help you get the keys to your new home.
*Assuming no complex mortgage
“Equity released from your home will be secured against it.”