Thinking About Help To Buy?
Help to Buy schemes are run by the government through one of 3 agents. They are designed to make it more affordable for people to own their own homes. Which agent you need to contact varies with your location so please enquire to get the appropriate details.
There are two separate schemes:
- Help to Buy: Equity Loan
- Help to Buy: Shared Ownership
About Help to Buy: Equity Loan
Help to Buy: Equity Loan is a government scheme that allows you to borrow a low-interest loan to put towards the cost of purchasing a newly build home.
Actual loan percentages may be changed by the government at any time but at the time of writing the equity loan is for the value of up to 20% of the purchase price for homes that are outside of London. For homes inside London, the equity loan is up to 40% of the purchase price.
You add the equity loan to the deposit you have saved and to the amount you need to borrow on a repayment mortgage. Together these cover the total cost of buying your newly built home.
About Help to Buy: Shared Ownership
Help to Buy: Shared Ownership offers those who can’t afford to buy a home through a traditional mortgage, the opportunity to buy a share of it. Actual loan percentages may be changed by the government at any time but at the time of writing this can be between 25%-75% of the home’s value.
You will pay rent, to cover the percentage of the property that you do not own. The more of the property you have a share in, the lower your rental payments will be.
Some shared ownership products are designed for specific groups of people:
- Home ownership for people with long-term disabilities(HOLD)
- Older people's shared ownership (OPSO)