The new Government-backed Help to Buy scheme is now available
Help to Buy is available exclusively for first time buyers on new homes up to £437,600 in the South East. The scheme will close on 31st March 2023 and will close to new applications on 31st October 2022. To be eligible for equity loan funding you must have submitted your application by that day.
You will need to pay a £500 reservation fee to reserve your home for a specified period.
You will need to fund a minimum of 5% of the property value.
The Government will lend you up to 20% of the property value through an equity loan and you will obtain up to a 75% mortgage from a bank or building society.
The equity loan is interest free for the first five years and can be repaid at any time during the loan term or on the sale of your home. You will pay a monthly management fee of £1 for the life of the equity loan.
An example of how Help to Buy works:
Market value: £300,000
Help to Buy Equity Loan: £60,000
The Help to Buy: Equity Loan (2021-2023) is subject to eligibility, terms and conditions.
For the first five years there is no interest charged on the equity loan component. At the start of year six a fee of 1.75% is payable on the equity loan, which rises annually by RPI inflation plus 2%. The equity loan is provided by Homes England and held as a second charge. You will pay a monthly management fee of £1 for the life of the equity loan.
Your mortgage lender’s deposit requirements may vary, a minimum of 5% deposit is required.
Available on selected properties, and subject to the Government’s specific terms, conditions and eligibility criteria.
Cove Homes strongly recommends you obtain advice from a regulated advisor. Our experienced site sales managers can recommend an independent mortgage advisor who can assess and advise on your eligibility.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBT SECURED ON IT.