Help to Buy
Own a house with low deposit.
Help to Buy is a Government backed scheme that allows you to buy a house with as little as 5% deposit. Help to Buy will add another 20% of equity loan or 40% if the property is in London. You will then need to secure the rest 75% from another lender.
This scheme is designed to help those who want to buy their first property to live in England. The property must be a new built and be included in the scheme. The value of the property cannot exceed £600,000 and this must be your only home (not a second home or to be let). Remember: You will not be allowed to rent out the home if the Equity Loan is not repaid yet.
Help to Buy equity loan from Government is interest free for the first 5 years! First step is to find a property that is included in the scheme. Before paying a reservation fee speak to an Independent Financial Adviser (that is us!) who will help you get a mortgage “Decision in Principle” – this will give you an idea of how much you could borrow as mortgage. We will then need to work with Help to Buy agent who will either accept your application or not. If successful we will then proceed with mortgage application!
Equity Loan scheme is exactly the same way as any mortgage, so your home may be repossessed if you do not keep up repayments.