With the government Help to Buy scheme, you can realise the dream of owning your own home with as little as a 5% deposit.
Help to Buy is a government-run scheme, offering loans of up to 40% of a property’s value. This scheme is available to first-time buyers and the property must be newly built and under £600,000 (in London).
When you put down as little as a 5% deposit on a newly built home, you can get a Government equity loan – for up to 40% of the purchase price.
For example on a £350,000 home, you would get £210,000 (60%, from your mortgage and the cash deposit) and you would pay back £140,000 on the loan (40%). You would need to pay off your mortgage with your share of the money. You won’t be charged loan fees on the 40% loan for the first five years of owning your home. Aldermore, Bank of Scotland, Barclays, Halifax, Leeds, Lloyds, Nationwide, NatWest, Newcastle, Royal Bank of Scotland, Santander, Teachers, TSB and Principality offer London Help to Buy.
London Help to Buy equity loans are available to first time buyers only. The home you want to buy must be newly built with a price tag of up to £600,000. You won’t be able to sublet this home or enter a part exchange deal on your old home. You must not own any other property at the time you complete your new purchase with London Help to Buy.
For more information on the scheme and to see if you’re eligible, get in touch with the new homes team today.