If you’re looking for a new home, you won’t have been able to avoid hearing the words “Help to Buy”. The reason there has been so much press coverage, is that this initiative could be your stepping stone to a new home with an affordable mortgage and a low deposit.
Our simple guide tells you the facts you need to know about Help to Buy and how it can help you buy a new home in Scotland or England.
1 How it works
In both Scotland and England, Help to Buy scheme reduces the mortgage and deposit required to buy a new home. In England, this means that with this initiative, home buyers can secure as new home with as little as 5% deposit, and a mortgage of between 75% and 90% of the home value. In Scotland the deposit can be as low as 4%, and the mortgage between 76% and 90% of the home's value.
An equity loan - provided by the UK Government or Scottish Government - covers the rest of the cost of the home. This equity loan can be up to 20% of the home's value. You don’t need to pay back the equity loan until you either sell the home, or finish paying off your mortgage meaning your monthly repayments remain affordable.
In Scotland there are no fees and no interest charges applied to the equity loan, and in England you will pay no fees for the first six years of your mortgage.
Help to Buy is open to all buyers looking to own a new home; meaning Help to Buy can assist you whether you’re a first time buyer or looking to trade up to a large family home. In England, Help to Buy is also designed to help you if you are unable to afford a suitable home in your local area.
The maximum value of the new homes which are eligible for Help to Buy is £400,000 in Scotland and £600,000 in England. This means that there is a wide selection of eligible new homes for sale at our developments.
In order to apply for the Help to Buy scheme on a new home you will need to have access to savings or funds to pay the 4-5% deposit on your new home. Additional fees are not covered by the scheme, so you will also have to demonstrate that you’re able to pay any additional fees associated with moving home such as legal fees and stamp duty.
You will also have to have a good credit history, and obtain approval for a mortgage from one of the Help to Buy Scheme’s approved lenders.
4 How do I get started?
Contact us today and we can guide you through the whole process; from consultation with an Independent Financial Advisor, to choosing your perfect new home.
Search for a new home now, and you could start the Journey to your new home with Help to Buy in Scotland or England today.