Help to Buy is an equity loan scheme designed to reduce the cost of homeownership by lowering the deposit required by lenders. Like the FirstBuy initiative, it offers eligible buyers an equity loan of up to 20% (minimum 10%) of the value of a new build property that has a maximum price of £600,000.
The equity loan is interest free for the first five years. After five years, the loan will attract interest at 1.75% per year, increasing each year by 1% above inflation.
The equity loan is funded by the Government through the Homes and Communities Agency; there is no house builder contribution.
The equity loan is secured against your property in the same way that your mortgage lender will secure its lending on your home.
Help to Buy is now available in England and will run until 31 March 2016 or earlier if the funding is taken up.
Please contact Plumlife on 0161 447 5151 for more information and details of other housing initiatives which may be suitable for you.