What is Help to Buy?

 Help to Buy is a Government backed initiative to assist First Time Buyers looking to buy a new build home. 

You can borrow a minimum of 5% on exchange with a Help to Buy: Equity Loan, subject to eligibility, terms and conditions and up to a maximum of 20% (40% in London) of the full purchase price of a new-build home. This initiative is only available from house builders who have been approved to participate in the scheme.

Amherst Homes are delighted to have been approved to participate in the latest Help to Buy Scheme (2021-2023). 

What do You Need to Know?

  • Help to Buy is only available on new build homes built by an approved house builder
  • You will only need as little as 5% deposit on exchange with a Help to Buy Equity Loan, subject to eligibility, terms and conditions.
  • You will only have to obtain a mortgage for a maximum of 75% of the purchase price
  • When you buy through the Help to Buy Scheme, you will have full title to the property
  • The Government through the Help to Buy Equity Loan scheme will lend you up to 20% of the value of your property.
  • The equity loan is interest free for the first 5 years
  • The scheme is now only open to first time buyers 
  • Help to Buy is only available on houses up to a value of £407,400 in the East of England

How Does it Work?

With a Help to Buy Equity Loan, the Government lends you up to 20% of the cost of your new build home, so you will only need a 5% cash deposit and a 75% mortgage to make up the rest.

You won’t be charged interest on the 20% loan for the first five years of owning your home.

Example: for a home with a £200,000 price tag

If the home in the example is sold for £210,000, you’d get £168,000 (80%, from your mortgage and the cash deposit) and you’d pay back £42,000 on the loan (20%). You’d need to pay off your mortgage with your share of the money.

For more information (including advice on fees and paying back your loan), please download the latest Help to Buy Buyers’ Guide:

https://www.gov.uk/government/publications/help-to-buy-equity-loan-buyers-guide

 

Am I Eligible?

To check your eligibility and find out what you need to do go to:  https://www.gov.uk/government/publications/help-to-buy-equity-loan-buyers-guide

Further Information

Further information on the Help to Buy Equity Loan Scheme is available on the Help to Buy website.