Help to Buy
Available until April 2021!
You’ve still got time to take advantage of the Government’s current Help to Buy Scheme, before this changes in April 2021 and is then only applicable to first-time buyers.
The Government’s Help to Buy Scheme is designed to help home-owners and new buyers onto and up the property ladder with a new generation of affordable mortgages. It’s a popular scheme from 2014 – and it’s easy to see why. With just a 5% deposit of the property’s purchase price, home buyers can now more easily stop renting – and join the ranks of happy home owners in the UK.
How does Help to Buy work?
The scheme is simple, but effective. It offers two options – one for those who want to keep their mortgage payments down, and one for those who can afford larger mortgage repayments every month.
Let’s take a look at which might suit you best:
Help to Buy option one – I want to keep my mortgage payments down
If you’re keen to keep mortgage repayments down, this option can help. All you’ll need is a minimum of 5% deposit. The government will provide a loan of 20% of the purchase price, leaving you to secure a 75% mortgage. The loan provided by the government can be paid back at any time – or on the sale of your home.
This option expands on the First Buy scheme, which was previously targeted just at first time buyers. Now – it doesn’t matter if you’ve previously owned a home!
Help to Buy Option Two – I can afford bigger repayments, but only have a small deposit
If you’ve only got access to a small deposit for your new home, but could afford to make larger repayments on your property, this could be for you!
As with the previous option, you’ll need a minimum 5% deposit to qualify. The government will then guarantee a proportion of your mortgage – encouraging mortgage providers to give you a far better deal. This is of course available to first-time buyers, as well as previous home-owners.
Help to Buy Eligibility
The scheme is designed to put property ownership within the grasp of many who would otherwise be unable, however admission to the scheme is dependent on a few factors. The property you’re hoping to purchase must be less than £600,000 in value, and you must not own any other property at the same time as purchasing your new home through the scheme. Although the above provisos are important – it’s important to note that there are more to take account of! Full lists of terms for participation in the scheme can be found at the official scheme website here:
Which banks are members of the scheme?
Many large mortgage providers have chosen to support Help to Buy – so there are plenty of banks to choose from when applying for your mortgage. These include:
- Bank of Scotland
- Virgin Money
A lot of excellent resources have been produced to help buyers to get to grasp with their options, and to understand what it can offer them. We’ve collected a few of the most useful resources here, so you can see whether it would be a good fit for you.
This resource gives a clear overview of the Help to Buy scheme, and sets out the requirements for eligibility for Help to Buy, as well as NewBuy schemes.
Money Saving Expert is a great resource for impartial advice about Help to Buy, setting out pros and cons about each option.
For a no-nonsense, clear and direct overview of the programme, take a look at Which’s guide.
You may have noticed that we have a Help to Buy Calculator on our site! Take a quick glance at the sidebar when browsing our property listings, and you can quickly calculate what deposit you’d need to own your new house under the Help to Buy Scheme.