UK Help to Buy schemes

New Homes

UK Help to Buy schemes

by on Thursday 8 January, 2015 in New Homes

More than 77,000* homes have been bought under the Government’s Help to Buy scheme . Of these, 83%* have been purchased by first-time buyers (94% outside of London) although the scheme is also available to existing homeowners wanting to move up the property ladder.

*Government published figures up to 31 December 2014 and includes all of the Help to Buy Schemes (Equity Loan, Mortgage Guarantee and NewBuy).

> Have a look at the regional profile of Help to Buy lending

The basics of all the Help to Buy schemes are the same

Help to Buy: Equity Loan is the English scheme for new-build homes and versions of it are available in Wales and Scotland. The basics of all the schemes are the same but there are some important differences too.

All the schemes aim to help you buy a new-build home that is affordable both in terms of the deposit you have available and the ongoing mortgage payments in relation to your income.

The basics of all the schemes are:

  • available on new-build homes from participating builders only
  • you will need a 5% deposit
  • the Government will lend you up to 20% of the property value
  • you will need to get a mortgage from a participating lender for the rest of the purchase price, usually 75% of the value.

More details on Help to Buy : Equity Loan in England…

  • first-time buyers or existing homeowners are eligible
  • all new-builds from participating builders up to a value of £600,000
  • the property must be your only property and you must live in it yourself
  • no fees are payable on the equity loan for the first 5 years then interest is charged on the Government loan from the 6th year onwards
  • not available on part exchange purchases
  • the equity loan must be repaid after 25 years or earlier if you sell the home.

Find out more here

> Details of the Help to Buy (Scotland) scheme

> Details of the Help to Buy – Wales scheme

> TheNorthern Ireland Housing Executive offers similar schemes, details here




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