What is it?……………Help to Buy is a government scheme which could make getting on to, or moving up, the housing ladder more accessible. It helps existing home owners and first time buyers purchase a home with as little as 5% deposit.
The idea is that the government with lend you up to 20% of the deposit, for a 75% mortgage lend, and you only need to find the extra 5% for the deposit. The property has to have a purchase value of £600,000 or less.
The Equity loan is based on New build properties only. The Mortgage guarantee can be on new build or existing properties. They both have to be for your main residence, not for buy to let properties.
No Equity loan fees are payable for the first 5 years ow owning your home. In the 6th year you will be charged a fee of 1.75% of the loan value. Each year after this will increase using the Retail Price Index plus 1%.
You can pay back 10 or 20% of the loan without having to sell your property.
For much more detailed information visit the Help to Buy Government website http://www.helptobuy.org.uk/