Help to Buy isn't just for first time buyers
Many of you may already be aware of the Help to Buy scheme that was introduced back in 2013 that aims to help those struggling to save money get onto the property ladder, or to move home. However, it’s a myth that all Help to Buy schemes are for first time buyers only.
With as little as a 5% deposit, the Help to Buy Equity Loan will allow you to borrow 20% of the purchase price, interest-free for the first five years. In the sixth year, you will pay 1.75%, rising annually by the increase (if any) in the Retail Price Index (RPI), plus 1%. For those in the London area, you can borrow up to 40% of the purchase price.
So if you’re pondering over how you might be able to afford your next move, it’s worth reading the rest of this article that looks at the Equity Loan in more depth.
Help to Buy Equity Loans
Who is it for? Homemovers and first time buyers
What is it for? New build homes only
When does it end? 2023
Perhaps your current home hasn’t gone up in value enough to fund the deposit for your next move, or perhaps the price jump between your current home and the new house you want to move into is too high. In which case, the Help to Buy Equity Loan might be just what you need.
The Help to Buy Equity Loan is excellent for those looking to move home into a new build property that is no more than £600,000 (£300,000 in Wales), but who are struggling to find the funds for a deposit.
So if you already own a small property and are looking to move up the ladder and into a new build, the Equity Loan could give you the boost you need to help get you to where you want to be, without having to wait and build up your savings first.
Finding the deposit is still the largest challenge many buyers are faced with, and since the scheme started, almost two in ten applicants are already existing homeowners in need of that extra boost to move them up the housing ladder.
Why speak to a mortgage broker?
If you’re saving hard to secure your deposit for your next home, then you could be a lot closer to moving than you think. To learn more about the ins and outs of the Help to Buy schemes, Mortgage Advice Bureau can help.
Not only can our trusted advisers explain exactly how the scheme works but we also have access to over 11,000 different mortgage products from 90+ lenders, so you aren’t restricted in the options that are available to you.
Let us take the hassle away from you and get in touch today to arrange an appointment with one of our expert mortgage advisers. We offer appointments either face-to-face or over the phone; whatever suits you best.
Because we play by the book we want to tell you that…
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.