How does Help to Buy work?
I’m a first time buyer, what do the new changes mean for me?
As a first time buyer, you’ll be able to use the Help to Buy scheme but you’ll have a smaller selection of homes to choose from due to the regional price caps .
We want to buy a bigger or second home using the Help to Buy scheme, can I do this?
You won’t be able to utilise Help to Buy scheme unless you're a First -Time Buyer after the changes in 2021.
How does the equity loan work?
Although your mortgage repayments will include interest, you won’t be asked to pay any interest on your 20% equity loan during the first five years. You only need to repay your equity loan within 25 years or when you sell or remortgage the house, but you can choose to pay it back before then. find out more here: www.gov.uk/government/collections/manage-your-help-to-buy-equity-loan
Is a 95% mortgage better?
Not necessarily; with the government adding the 20% equity loan to your 5% deposit, you actually only need a mortgage for 75% and you still own 100% of your home. Essentially, Help to Buy allows you to benefit from a slightly lower mortgage, which can reduce your monthly payments.
How do I apply for Help to Buy?
We work with a number of independent advisors who specialise in new home sales who can help. This is a free service.
Can I buy a home using the scheme to sublet?
You won’t be able to sublet the home you’re buying, negating buy to let investing.