Help to Buy Scheme Everything You Need to Know

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buy scheme

Did you know that the Help to Buy scheme is not just available for first time buyers?

What is the Help to Buy scheme? The United Kingdom government has created the Help to Buy schemes to help people buy their own homes. These schemes are divided into 2 types for second-time buyers:

Help to Buy: Equity Loan

The government will give you loan, as of 2016 the loan can be up to 40%. All you need to do is pay a cash deposit of 5% and a 75% mortgage.

Help to buy: Shared Ownership

If you cannot afford to pay a full mortgage or a 100% mortgage, the government will allow you to buy just a share of your house. This share has a lower limit of 25% and an upper limit of 75%. Since you do not have the money to buy the remaining share, you will just pay a rent on that. As and when you have the money, you can buy more shares of the house.

By using the equity loan scheme, buyers can purchase a property worth up to £600,000 with just a 5% deposit, therefore on a one bedroom apartment house hunters could buy with as little as £14,750.* On the other hand, if you choose to use the shared ownership scheme, you can buy 30% of the same property for £180,000 and pay rent for the remaining 70% all while calling that property your own home.

These include stylish mezzanine apartments, modern loft apartments featuring exposed beams and attractive garden level apartments that provide direct access from the property to the sweeping lawned gardens.

So why is this a good opportunity for you?

  • You will be able to buy houses which were previously out of your budget.
  • You can buy modern apartments, garden level apartments and even properties with lawns and gardens at just a 5% deposit – that means owning a beautiful home at just 5% of the actual value.
  • You can buy out of reach apartments using the shared ownership scheme and pay for your dream apartment in small installments over a period of time.

Help to Buy enables first and second time buyers to purchase a property with as little as 5% deposit. The Government lends you up to 20% of the cost of your newly built home, and you take out a 75% mortgage to make up the rest. You will not be charged loan fees on the 20% loan for the first five years of owning your home.

Here are the benefits of the Help to Buy scheme:

  • You will be able to buy and shift into a new home much sooner than you imagined or planned.
  • The up-front deposit amount is drastically reduced.
  • You can borrow money without paying any interest for the first 5 years.
  • You will get a loan at a very good rate

Suzanne Aplin, Sales & Marketing Director at City & Country said

“A number of first time buyers have already bought a new home at the Estate and with the range of properties we have, it’s really no surprise. Our stylish one and two bedroom apartments are located within the striking sanatorium and have access to communal areas throughout the Estate, including the stunning grounds.

“Many house-hunters don’t realise that Help to Buy is also available to people who have bought a property before and are now looking to move for the second time. So if you’re looking to move into a larger property up to the cost of £600,000, you can use Help to Buy. Independent financial advisors will also be here on the day to help visitors understand what they could afford using the scheme.

First time buyers Vicky and Sam bought their home at the Estate using Help to Buy. Vicky explains

“We had seen the Estate advertised about a year prior to looking but at the time it was out of our reach. I remember both of us saying ‘one day maybe we will live there’. We saw our flat advertised at the beginning of the year and thought we would go and have a look at it but really didn’t think it would be achievable until later in the year. With the encouragement and help of the fantastic sales team, we used Help to Buy and we were able to move in by the end of March.”