Help to Buy Equity Loan
Up to 20% interest free loan for the first 5 years
Buy your new home with only a 5% deposit
No interest payments on the help to buy equity loan for the first 5 years
Available to first time buyers and home movers on purchases of up to £600,000
Available for the purchase of a new home only
We advise and recommend on a comprehensive range of mortgages from across the market.
Help to buy equity loan example
- New property purchase: £250,000
- Help to buy equity loan: (20%)£50,000
- Customer deposit: (5%)£12,500
- Customer mortgage: £187,500
No interest is charged on the help to buy equity loan for the first five years.
From year 6 onwards the customer is charged 1.75% per annum. For the initial percentage for the equity loan.
After this, the fee will increase every year. This increase is based on the retail price increase plus 1%.
Help to buy equity scheme
From April 2013 the Government Help to Buy equity scheme was available for all buyers purchasing a new home by the end March 2016. The maximum property price for Help to Buy is £600,000.
Unlike previous Government's initiatives, this scheme is open to all builders and or developers who register for the scheme. Former help to buy schemes were restricted to selected builders only so were unlikely to be as successful as the current help to buy equity loan scheme.
Builders and developers can register for the help to buy equity scheme here http://www.homesandcommunities.co.uk/help-to-buy
When the property that was purchase through the scheme is sold, it is mandatory that it is at the full market value. The selling price must therefore match the main mortgage lender's independent valuation.
Purchasers cannot part-exchange their existing property for a Help to Buy equity scheme purchase.
There are many mortgage lenders that will accept help to buy equity home loan applications. Home buy customers can sometimes have full access to the mortgage lenders products as they would with a normal purchase. Please contact Impartial for further information.