If you’re trying to get your first foot on the property ladder, chances are you’ve heard of the Help to Buy Scheme. It was introduced in 2013 and aims to help house hunters save enough money to buy their dream home.
Many people are under the illusion that the scheme only offers a helping hand to first-time buyers – but that’s a myth!
Heard of the Help to Buy Equity Loan? It could be your golden ticket to buying your next home.
The Help to Buy Equity Loan will allow you to borrow 20% of the purchase price, interest-free for the first 5 years. In the sixth year, you will pay 1.75%, rising annually by the increase (if any) in the Retail Price Index (RPI), plus 1%. For those in the London area, you can borrow up to 40% of the purchase price. Want to know the best bit? Homeowners can do this with as little as a 5% deposit!
Sound good so far? Keep reading to find out how the Help to Buy Equity Loan could help you achieve your next move.
Who’s it for? Homeowners and first-time buyers
What is it for? New build homes only
When does it end? 2020
Perhaps the price jump between your current home and the new house you want to move into is just too high. Maybe your current home hasn’t gone up in enough value to fund the deposit for your next move. If you’ve found yourself stuck in either of these situations, the Help to Buy Equity Loan might be just what you needed.
The Help to Buy Equity Loan is perfect for those looking to move home into a new build property, but are struggling to find funds for the deposit. This scheme applies to new build properties up to the value of £600,000 in England and £300,000 in Wales.
#TuesdayThoughts Did you know #HelptoBuy isn’t just for first time buyers? If you’re looking for a bigger home for your growing family you could use the scheme too! 🏡👨👩👧👦 pic.twitter.com/t71tg4tnfj
— Help to Buy NW (@helptobuynw) January 16, 2018
So if you already own a small property and you’re looking to move up the ladder into a new build, the Equity Loan could be the perfect solution. It could give you the boost you need to get you where you want to be without having to wait and build up your savings first.
Finding the deposit is still the biggest challenge many buyers are faced with, whether it’s your first home or your third. Since the scheme started, almost two in ten applicants were found to be existing homeowners in need of that extra boost to help them move into their next house.
If you’re saving hard to secure your deposit for your next home, then you could be a lot closer than you think. If you’d like to learn more about the Help to Buy Scheme and how it can work for you, we’re here to help!
Our expert team of mortgage advisors can explain exactly how the scheme works and how it can best benefit you. We also compare the latest rates of over 50 high street and niche lenders in order to find one that’s right for you. Your dedicated personal mortgage advisor will also manage the entire application for you, right down to the paperwork. We’ll guide you through the whole process, every step of the way, so that everything is smooth and stress-free.
Get in touch with us today to book your free, friendly mortgage appointment now.