Help to Buy

Key things you need to know about the scheme:

• Available on new build homes only throughout England
• You will need a minimum of a 5% deposit
• Available to all, not only first time buyers (unlike FirstBuy)
• Qualify for up to a 20% interest free government loan. Interest free for 5 years.*
• You may only need a 75% mortgage
• Applicable to all properties below £600,000
• Only available for repayment mortgages
• Mortgages are now available through a variety of high street lenders

An example…

• If you have a deposit of £10,000 (5%)
• Government loan of £40,000 (20%)
• Mortgage of £150,000 (75%)
• Value of home could be £200,000
• The interest rate in the sixth year will be 1.75%, which will rise annually by RPI (retail price index) inflation plus 1%

Are you eligible?

• You must demonstrate you have savings for the deposit, legal fees, stamp duty and the cost of moving
• Be purchasing a new build property for £600,000 or less
• Have a good credit history

When will you have to pay it back?

The equity loan is a for a maximum of 25 years. You can however pay the loan back at any time during the mortgage term or on the sale of your home.

Help to Buy ISA

If you’re taking advantage of Help to Buy you can now also benefit from the Help to Buy ISA.

If you reserve a home with Help to Buy you are elligble for the associated ISA, which boosts your savings by 25%; every £200 you save, the government tops it up with £50 to a maximum of £3,000. You can find out more about the Help to Buy ISA here.

Would you like more information?

Download the latest Help to Buy guide from Homes England (formerly the HCA).