What is it and how does it work?
Help to Buy Equity Loans
With a Help to Buy equity loan, the government loans you up to 20% of the cost of a new-build home, so you only need a 5% deposit and a 75% mortgage to make up the rest.
Help to Buy equity loans are open to both first-time buyers and home movers. This scheme is only available on new-build homes worth up to £600,000.
You won't be charged loan fees on the 20% loan for the first 5 years of owning your home. In the 6th year, you'll be charged a fee of 1.75% of the loan's value. After this, the fee will increase every year. The increase is worked out by using the Retail Prices Index plus 1%
When you sell, you must repay the equity loan from the sale proceeds.
You will still be fully responsible for your mortgage repayments.
The scheme is not available for those wishing to purchase a second home or buy-to-let.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.
Want to know more about this schemes?
Call 0113 258 1293 now for more information.