ABOUT Help To Buy Equity Loan Mortgages
Help to Buy may be a good option for you if you desire to live in a newly built home with the benefit of paying a little deposit of 5% value of the property towards your mortgage.
We are an expert at arranging Help to Buy mortgages. We have helped many people to their new homes, and we can help you too without stress.
How does Help to Buy work (Equity Loan 2021-2023)?
The Help to Buy Equity Loan scheme is a government-backed initiative introduced in 2013 to encourage hard working people own
their home.
- The government will lend you a 20% deposit (40% for London properties) of the value of the property.
- You commit to minimum deposit of 5% of the purchase price.
- The remaining 75% of the price of the property is covered by standard mortgage.
- The scheme is only available on New Build properties.
- The 20% government loan is interest free for the first 5 years, but you will have to pay a £12 management fee each year.
- An interest of 1.75% kicks in at year 6 and increases every year at RPI measure of inflation plus 1% until the loan is paid off
- The equity loan payment is interest only, so you do not reduce the amount you owe.
- You can repay all or part of your equity loan at any time. A part payment must be at least 10% of what your home is worth at the time of repayment.
- The Government will take 20% of the sale price when the property is sold regardless of the original size of the loan
- You can repay all or part of your equity loan at any time. A part payment must be at least 10% of what your home is worth at the time of repayment.
- The amount you pay for a property is dependent on where you live in England.
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