About Help to Buy
The Help to Buy scheme is a goverment backed scheme available to both first time buyers and existing home owners. In London the scheme is available on new build homes up to £600,000 in value. Our developments typically include homes that are eligible.
The scheme is in effect an equity loan provided by the Government. They lend you up to 40% of the cost of your new build home, so you will need a minimum 5% deposit and a 55% mortgage to make up the rest.
That gives purchasers lots of flexibility - your first time buy or move may be closer than you thought !
For this scheme you must have a mortgage, which will be a first charge, as the equity loan can only be a second charge. The equity loan is for a maximum of 25 years or before if the property is sold or the mortgage is redeemed, whichever term is the shorter of the two.
You will not be charged any interest on the 40% loan for the first five years of owning your home - just a management fee of £1 a month will be applicable from the date of purchase. From year six, a fee of 1.75% is payable on the equity loan, which rises annually by RPI (Retail Price Index) inflation plus 1%.