The Government’s Help to Buy scheme was launched in 2013 and since its introduction, just under 170,000 people have used it - and it is continuing to help make that dream move possible for buyers across the country.
Exclusively available for brand-new homes, Help to Buy – Equity Loan gives buyers the opportunity to get on and up the housing ladder, by providing a 20% equity loan.
South West regional sales and marketing director at Bovis Homes, Emma Smith, explains more about the scheme and how it is benefiting buyers from across the region.
Is Help to Buy for first-time buyers?
“Many people consider Help to Buy as a scheme for first-time buyers - and it is extremely popular with them - but you can still take advantage of the scheme if you have previously owned a property or are looking to move to a bigger home.
"We’ve had many customers who didn’t think they’d be able to afford their dream home, but after talking to our sales team and a mortgage advisor, they have been delighted to discover that the home they wanted was within reach.”
Does Help to Buy make it easier for me to buy a property?
“With the scheme, buyers only require a 5% deposit and receive an equity loan of up to 20% of the value of the property from the Government, which is interest-free for the first five years.
After five years, you will be required to pay an interest fee of 1.75% of the amount of your Help to Buy shared equity loan at the time you purchased your property, rising each year after that in accordance with the Retail Prices Index plus 1%.
The loan itself can be repaid without penalty at any time within the 25-year loan period or on the sale of the property if earlier. By borrowing 75% of the property’s value, buyers are able to access more competitive lending rates.
“If you are looking to buy a home, the Help to Buy scheme could well unlock the door to your dream move. If you have a 5% deposit available and you can secure a mortgage, then it could be an option for you.”
Are there any restrictions?
“The property you are buying has to be less than £600,000 and must be your only residence. It isn't available for buy-to-let investors."
How can I find out more about Help to Buy?
“You can find out more on the Help to Buy website or visit one of our sales centres to discuss your options there. If you are an existing home owner, you should also speak to our team about our other purchase assistance schemes, such as Smooth Move and Home Exchange, which can help to reduce the stress and cost of moving.
“We can also put you in touch with an independent mortgage advisor and it’s worth speaking to them to discuss your situation.”
Bovis Homes has properties ranging from two-bedroom apartments to large family houses available with Help to Buy in prime locations across the South West, which are built in a variety of styles and layouts.
YOUR HOME MAY BE REPOSSED IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT