BPC Land Blog

Help to Buy Scheme Posted on 04/10/2018

Help to Buy Scheme

BPC Land Sales & New Homes are proud to be the selling agent for a number of property developers that offer the Help to Buy scheme. Based in London and outside – find out all you need to know about the government scheme designed for first-time buyers.

 

What is Help to Buy?


Help to Buy is a government scheme that offers financial support to those looking to secure a home, but who are struggling to find the means for a deposit.

The Help to Buy scheme is where the government will give buyers a loan of up to 20% (outside of London) and 40% (within London) of the final property price of which the buyer wants to purchase.

 

An overview of the New Government Scheme


The scheme enables buyers to purchase a new property, funded by a repayment mortgage, with assistance from the ‘Homes and Communities Agency’ in the form of an Equity Loan. It is applicable for new-build homes only up to a maximum purchase price of £600,000 in England. The property being purchased with an Equity Loan must be the only home that buyers own and cannot be rented out after buying.

The Equity Loan can be up to 20% of the purchase price meaning that if the purchaser can secure a 75% mortgage they will only need to pay a 5% deposit. The equity loan is interest free for the first five years after which interest is charged at 1.75% per annum, increasing each year by the Retail Price Index (if any) plus 1%. The Equity Loan must be repaid after 25 years, or whenever you sell your home; you can pay the loan back over time in different quantities or all at one time, and the amount that you reimburse totally depends on the value of your home.



The London Help to Buy Scheme


After the governments’ Help to Buy Scheme had a lot of success with first-time buyers when it was first introduced, the London Help to Buy scheme was announced in February 2016. This scheme allows first-time buyers the opportunity to borrow up to 40% of the price of the London property that they wish to buy. To add even more appeal to this scheme, there are no age restrictions and the loan is interest-free for the first five years.

 

Currently looking for a new build property and want to use the Help to Buy scheme? We have multiple developments across the South East of England that could be of interest to you. Visit our site for more information www.bpcland.co.uk or get in contact 01992 558855