The Help to Buy scheme varies slightly in England 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 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.