Help to Buy: Equity Loan
With a Help to Buy: Equity Loan, the government will lend first-time buyers up to 20% of the cost of a newly built home and up to 40% in London, subject to eligibility, terms and conditions.
There are regional price limits on the homes that you can buy with a Help to Buy: Equity Loan. For London, the maximum purchase price is £600,000, and for West Midlands, the maximum purchase price is £255,600. Please refer to the government website for the full regional list.
The equity loan percentage you borrow is used to calculate your interest and equity loan repayments. There is no interest to pay for the first five years, although you can start repaying the loan whenever you want to. Please refer to the government website for full details on interest repayment rates and how to repay your equity loan.
“The support Galliard provided with the Help to Buy paperwork was critical … I couldn't imagine having to navigate that alone.”
Am I eligible for Help to Buy?
If you're a first-time buyer aged 18 or over, you could be eligible for a Help to Buy: Equity Loan.
To qualify, the property you purchase must be in England and must be a new-build home, purchased from a Help to Buy registered homebuilder. You and anyone with whom you are buying the home must have never owned a residential property or land neither in the UK nor abroad and not have had any form of sharia mortgage finance.
You must be able to afford the fees and interest payments, the latter of which is calculated by the equity loan percentage you borrow.
Applying for Help to Buy
Once you have reserved your property with a registered homebuilder, they will provide you with a signed copy of the registration form which you will need to apply for the equity loan.
The next step is to complete a Property Information Form. This form is sent to your local Help to Buy agent, who will assess your eligibility for the scheme, and guide you through the Help to Buy process.
Once your eligibility has been satisfied, the Help to Buy agent will issue an Authority to Proceed, valid for three months. Within this time, you will need to apply for a repayment mortgage of up to 75% of the purchase price with a minimum 5% deposit.
First-Time Buyer Schemes
If you’re a first-time buyer, several government affordable home ownership schemes are available to help you get on the property ladder. But which scheme is best?
The Conveyancing Process
Do you know the difference between Exchange and Completion when buying a property? Follow our five step guide into the conveyancing process.
Mortgages for First-Time Buyers
Visionary Finance provide all the information you need to help you find your perfect mortgage when purchasing a property with a Help to Buy: Equity Loan.
How long will the Help to Buy scheme run for?
Applications for the Help to Buy: Equity Loan will close on 31 October 2022 for property purchases legally completing before the scheme ends on 31 March 2023.
Where is the Help to Buy scheme available?
Help to Buy: Equity Loan is available in England. If you live elsewhere in the UK, you can use: Help to Buy Scotland, Help to Buy Wales, and Help to Buy Northern Ireland.
What are the regional price limits?
For London, the maximum purchase price is £600,000 and, for West Midlands, the maximum purchase price is £255,600. The full regional list can be found on the government website.
How can I find a Help to Buy property?
A Help to Buy property will be identified by the Help to Buy logo. Find your Galliard Homes Help to Buy property here or search for a property with a Help to Buy agent.
What is the Help to Buy ISA?
The Help to Buy ISA closed to new accounts on the 30 November 2019 and is no longer available to open. However if you already have an existing account you opened before this date, you can deposit money into it until November 2029.
Can I get a Help to Buy: Equity Loan on a Shared Ownership property?
Generally, Help to Buy is offered by housebuilders and Shared Ownership by Housing Associations. There is therefore no cross over between the schemes.
Can I rent out my Help to Buy home?
To qualify for Help to Buy you must be an owner occupier, however, you can rent out a spare room as long as you also reside in the property.