The Help to Buy scheme varies slightly in England, Scotland and Wales so take a look at the relevant Help to Buy pages for your area. Although the terms differ, the idea is the same. First time buyers and in some cases existing houseowners can borrow a significant percentage of the value of their new build home, from the Government, reducing both their deposit and their mortgage repayments.
Here's how the Help to Buy Scheme works:
- You put down a 5% deposit
- The Government will lend you up to 20% of the value of your property through an equity loan (this increases to 40% in London)
- You only need to secure a mortgage from a bank or building society for the outstanding amount
- The equity loan can be repaid at any time or on the sale of your home
- The scheme is only available on new build homes and up to a maximum value (depending on your area)
Take a look at the Help to Buy Buyers’ Guide for full details.