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Help to Buy

Help to buy is a government-backed scheme which helps first time buyers and existing home owners purchase a home with as little as 5% deposit.

With Help to Buy, you can buy a new home with just 5% deposit – whether you’re a first time buyer or you’re moving on from your existing home.

Who can benefit from Help to Buy?

Help to Buy is available to both first time buyers and existing home owners alike and means you can buy a new home with a low 5% deposit.
  • If you’re a first time buyer we know how difficult it is to raise a large deposit to purchase your first home. With Help to Buy you’ll need to save just 5% deposit to get a mortgage, so you could purchase your first home sooner than you thought.
  • If you’re an existing homeowner, you can use Help to Buy to trade up to a bigger property – even if you have limited equity in your current home, because you only need 5% deposit to move.
  • There is Just a 5% deposit required to qualify
  • Help to Buy is available to all home buyers, not just first time buyers
  • The Government will lend you up to 20% of the value of your property through an equity loan
  • You will have 100% home ownership
  • The loan can be repaid at any time or on the sale of your home
  • You only need to secure up to a 75% mortgage from a bank or building society
  • There is no interest on the loan amount for the first 5 years
  • The maximum home purchase price eligible is £600,000

Help to Buy cannot be used in conjunction with any other scheme

How does Help to Buy work?

There are two ways to buy a new home with a 5% deposit using the Help to Buy scheme.
  • The Help to Buy interest-free equity loan – exclusively available on new build properties. The equity loan could reduce your mortgage repayments, making this an affordable option.
  • The Help to Buy mortgage guarantee, which means that you could get a 95% mortgage on the home of your choice.

How does the Help to Buy equity loan work?

With the Help to Buy equity loan scheme, you’ll need as little as 5% deposit to buy a new home.

Help To Buy Diagram

The Government will provide an equity loan of up to 20% of the value of your property and you’ll need to obtain a 75% mortgage.

With a 75% mortgage, your mortgage repayments could be more affordable if you buy a home using the Help to Buy scheme.

Help to Buy is exclusively available on new homes. Read on to find out more about the equity loan scheme.

With the Help to Buy equity loan scheme:

  • Both first time buyers and existing home owners are eligible
  • You will only need a 5% deposit to purchase your new home
  • The Government will lend you up to 20% of the value of your new build home via an equity loan
  • The equity loan is interest free for the first five years
  • You may only need to secure up to a 75% mortgage
  • The Help to Buy equity loan can be repaid at any time or on the sale of your home

How does the Help to Buy mortgage guarantee work?

With the Help to Buy mortgage guarantee scheme you could get a 95% mortgage, which means you only need to put down a 5% deposit to buy a new home.

Help To Buy

With the Help to Buy mortgage guarantee scheme, you only need a 5% deposit to buy your new home.

Great news for first time buyers who are struggling to save for a large deposit, and existing home owners who have limited equity in their current home.

Read on to find out more information about the mortgage guarantee scheme.

With the Help to Buy mortgage guarantee scheme:

  • You could get a 95% mortgage
  • You will only need a minimum 5% deposit to buy a new home
  • The scheme is available across all new homes England, Scotland and Wales worth up to £600,000
  • With the Help to Buy mortgage guarantee, the Government will guarantee your mortgage up to 15% of the value of the property

This makes it less risky for lenders to offer a mortgage to a borrower with only a 5% deposit, and means that they will be able to offer cheaper rates than previously available with a 5% deposit.